How to Spot and Avoid Loan Scams
Fake lenders target people who need money fast. Learn the red flags, how to check a lender in two minutes, and exactly what to do if you've already paid a scammer.
The most common loan scam asks you to pay an upfront fee before you get the money. Legitimate lenders never ask for gift cards, wire transfers or fees to release a loan. Check a lender's license on NMLS Consumer Access, and report scams at ReportFraud.ftc.gov.
- Biggest red flag
- Upfront fee before funding
- Check a license
- nmlsconsumeraccess.org
- Report scams
- ReportFraud.ftc.gov
- mobiloans asks for
- $0, never any payment
How Loan Scams Work
The most common loan scam is the advance-fee scam. Someone promises you a loan, often "guaranteed" regardless of credit, then asks you to pay first for insurance, processing, paperwork or a "good faith" deposit. Once you pay, the loan never arrives.
Where the money goes
The order of payments tells you if it's real
Legitimate lender
Loan scam
The golden rule: a lender that asks you to pay before you get a loan is not a lender. Legitimate fees are taken out of the loan or added to your balance, never collected upfront.
Red Flags to Watch For
Guaranteed approval
Real lenders review your information first. No one can promise approval in advance.
Fees before funding
Requests for insurance, processing or "first payment" fees before you get the money.
Odd payment methods
Gift cards, wire transfers, cryptocurrency or a payment app to an individual.
Pressure to act now
"Offer expires in 10 minutes" or repeated calls and texts you didn't ask for.
Requests for passwords
Your online banking login, one-time codes or access to your phone's contacts.
No real address
No physical address, no state license and a website that looks copied.
Check a Lender in Two Minutes
Tick each statement that's true about the lender you're considering.
- NMLS Consumer Access: search the company name at nmlsconsumeraccess.org.
- Your state regulator: most state banking or financial departments list licensed lenders.
- CFPB complaint database: see how a company responds to customer complaints.
Fake Messages Using Our Name
Scammers sometimes pretend to be well-known loan sites. Here's how to tell a real mobiloans message from a fake one:
Real mobiloans
- Emails only from @mobiloansonline.com
- Never asks for any payment
- Never asks for your bank password
- Lender offers open on the lender's own site
Scammer
- Gmail, Yahoo or look-alike domains
- Asks for a fee to "release" your loan
- Asks for login codes or passwords
- Pushes you to pay by gift card or crypto
If You've Been Scammed
- Stop contact and don't send more money, even if they promise a refund.
- Contact how you paid. Call your bank, card issuer, gift card company or money transfer service right away and ask to reverse the payment.
- Report it at ReportFraud.ftc.gov. Reports help law enforcement track scammers.
- Protect your identity. If you shared your Social Security number or bank details, visit IdentityTheft.gov and consider a credit freeze with all three bureaus.
- Change passwords for your email and bank accounts if you shared any login details.
Loan Scam FAQ
How do loan scams usually work?
Most are advance-fee scams. The scammer promises a guaranteed loan, then asks you to pay a fee for insurance, processing or paperwork before you get the money. After you pay, no loan arrives, and they often ask for more.
Do real lenders ever charge fees upfront?
Legitimate lenders don't ask you to pay before you receive a loan. Fees like origination fees are deducted from the loan or added to your balance and disclosed in writing. The FTC warns that upfront-fee demands are a hallmark of loan scams.
How can I check if a lender is licensed?
Search the lender on NMLS Consumer Access (nmlsconsumeraccess.org) or your state's financial regulator website. You can also look up complaints in the CFPB's consumer complaint database.
Will mobiloans ever ask me for money?
No. mobiloans is free for borrowers and never asks for an upfront fee, gift card, wire transfer or cryptocurrency. We only email from addresses ending in @mobiloansonline.com.
What should I do if I already paid a scammer?
Contact the company you used to pay, such as your bank, gift card issuer or money transfer service, right away and ask to reverse the payment. Then report the scam at ReportFraud.ftc.gov. If you shared personal information, visit IdentityTheft.gov for a recovery plan.
Sources: Federal Trade Commission, Consumer Financial Protection Bureau, NMLS. Reviewed October 3, 2026.
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