Why your loan mail is probably fake

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Miyuki

Administratrix
Staff member
Many of the names of persons or companies listed in this forum are fake. Others might be real, and the scammer/criminals either abuse the names of the persons or companies or of persons who may work for these companies. Scammers also invent names. All of the existing persons and companies whose names appear in this forum are VICTIMS of the criminals and are not connected in any way to the illegal activites committed by criminals in their name.
 

Gentle Giant

Giant Admin for a Day
Staff member
Assuming that you actually get here to this part, here's some reasons that the loan email you received is probably fake. I do want to emphasize that there are loan spam mails going around which may be from legitimate lenders. However, if you are reading about a loan company posted here at AFI or any other anti-fraud website then you can be certain it's a fake.

If you have read about how to identify a scam email (which is here) then in addition to things like bad grammar, poor spelling, even poorer punctuation, the use of free email servers, etc. these are some other things that make a loan scam format completely bogus.

What's the scam?
The scam in any loan format is an advanced fee fraud. The "loan lender" is going to charge you advanced fees in order for you to receive your loan. But as with any advanced fee fraud all you will do is pay money to get your loan. You aren't ever going to get a check for your loan. You're only going to pay money. In addition you can tell it's a scam if they are asking you for an advanced fee and they want you to send money by Western Union. That IS a scam. You might run across some "lender" who asks you to send money (an advanced fee) to a bank account but that just means a scammer/criminal with a bank account. Let us know the bank account and we can take care of that.


1. We offer loans at _____%.
Does that interest rate look too good to be true? Then it probably is. I think one of these loan scams offered money at 0.1% (no that isn't a typo). That would be a complete scam.

Companies or individuals make money in the loan business by borrowing money at an interest rate (say 3%) and then loaning it to other people and charging them an interest of 4% for example. A company loaning money at 0.1% would be borrowing money at 0.05% or something. Either that or they don't plan to be in business very long.

As of the date I am writing this, (Aug 29, 2008) here are some prime interest rates in major financial markets. These are the rates which central banks loan to other banks. That means the banks will pay at least 1% more for a loan that the rate which they borrow from the central bank.
USA: 2%
U.K.: 5%
Euro Zone: 4.25%
Canada: 3%
Japan: 0.5%
Switzerland: 2.75%

The point is this: the lower the interest rate, the more likely it is that you have a scam mail. The best thing to do with that email? Delete it and forget because it's a scam mail.


2. We offer unsecured loans.
Sorry, real loan lenders don't do that. Any business that loans money wants "collateral" which is something physical and tangible that they can take possession of if you don't pay the loan. If you buy a car the car is the collateral. If you get a mortgage on house the house is the collateral. No one is going to offer a large sum of cash without collateral. Only your family or friends may loan you money without collateral. Real companies don't. It's that simple. If your email says it's an unsecured loan then it's a scam mail and you can delete it.


3. We are a major international loan company.
Great. Then they probably have a webpage where you can read more about the company and the kinds of loans they make. Wait a minute--no webpage? It's not a real loan company, it's a scam email and you can delete it.


4. We offer loans up to $160,000,000.
Yeah, right. And unsecured too. I can't even imagine the kind of documentation you would need to borrow $160 million. Not to mention the collateral.

5. "We help stop Bad Credit History".
Your bad credit history is just beginning if you deal with these criminals.

6. "...no credit check up"
Yeah, right. Someone is going to loan you a million dollars without a credit check. Suuuuurrrreeeee. NOT! That's a scam email you have and you can delete it because it ain't real.

7. The loan lender is in Nigeria.
I'm sorry, what was the question? Oh yeah. If this lender has so much money why isn't he/they loaning that money in Nigeria? Isn't it needed there? Sure it is. What you have is an email from a scammer/criminal and you can safely delete it because it's not real.

8. We offer 50 year loans.
Sorry folks, not in the real world. Governments might extend credit to another government for that long but no one in their right mind is going to give you a fifty year loan. The actuary tables work against that for one thing. It's just too much of a risk for a real loan lender. You used to only get 30 years on a house mortgage. But if you get a 50 year loan offer you can be sure it's a scam so you can safely delete it.
 

Kat

Administrator
Staff member
As of the date I am writing this, (Aug 29, 2008) here are some prime interest rates in major financial markets. These are the rates which central banks loan to other banks. That means the banks will pay at least 1% more for a loan that the rate which they borrow from the central bank.
USA: 2%
U.K.: 5%
Euro Zone: 4.25%
Canada: 3%
Japan: 0.5%
Switzerland: 2.75%
And that was before the Chernobyl/Three Mile Island meltdown in the financial markets.
 

Central Scrutinizer

Administrator
Staff member
Just a personal observation: in the middle of economic hard times I think we are going to be see more and more of these loan scam formats.

Folks, if it's here it's a scam mail. Please always do your research first before you answer an unsolicited email loan offer.
 
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