Don’t Fall for This Loan Application Scam

Scammers are always trying new schemes to convince targets to send them money or personal information. Among the latest scams involves loan applications, and convincing targets that they either should apply for a fake loan, or that they owe money on a loan they never applied for.

There are two main tactics scammers might use to try to fool you in this particular scheme, according to the FTC. The first is tricking you into “applying” for a loan. A scammer will call you to let you know you are “prequalified” for a loan, but they need some personal details first. That might include things like your Social Security number, bank account information, or your birth date. They might even put on the pressure by selling you on the time-sensitive nature of the loan: If you just hand them over the info they need, they can get you applied for the loan then and there.

Of course, there is no loan. Instead, the scammer simply wants your private information for their own gain.

The second method is to try to convince you that you already have a loan, and that you have an outstanding balance you owe money on. You probably know you don’t actually have a loan you never applied for, but it can be difficult in the moment to think clearly, especially when the caller makes the situation sound so serious and urgent. They might let you know that you can make an easy payment today, but through something untraceable, like a gift card or crypto.

Whichever scheme you are contacted about, remember: This is a scam. You do not need to pay, or hand over information over the phone. If they leave a message, don’t call back, even if they persist. Block the number whenever you know it is from the scammer. If you have an iPhone, you can try iOS 26’s new call screening feature. This will help cut down on the number of unknown calls you receive, and reduce the risk you’ll run into an issue here.