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Loan Offer Advance Fee Scams

Summary:
Unsolicited emails from supposed loan agencies claim that the recipient can borrow money for any purpose at a low interest rate (Full commentary below).



Status:
False

Example:(Submitted, September 2007)
Subject: AFFORDABLE LOAN OFFER @3% INTEREST RATE

Goodday ,

We Offer Private, Commercial and Personal Loans with very Minimal annual Interest Rates as Low as 0.3% within a 1year to 50 years repayment duration period to any part of the world. We give out loans within the range of $5,000 to $90,000,000 USD. Our loans are well insured for maximum security is our priority

Are you losing sleep at nights worrying how to get a Legit Loan Lender? Are you biting your fingernails to the quick? Instead of beating yourself up, call the Cindy Loan Investment now, Loan specialists who help stop Bad Credit History, to discover a win-win solution which is Our Mission.

* Are you financially Squeezed?
* Do you seek funds to pay off credits and debts?
* Do you seek finance to set up your own business?
* Are you in need of private or business loans for various purposes?
* Do you seek loans to carry out large projects?
* Do you seek funding for various other processes?
* If you have any of the above problems, I can be of assistance to you but I want you to understand that I give out my loans at an interest rate of 0.4%.
* Borrow anything up to $90,000,000 USD.
* Choose between 1 to 50 years to repay.
* Choose between Monthly and Annual repayments Plan.
* Flexible Loan Terms.

Interested Persons should Fill out the Application Form below.

APPLICATION:
1)Name
2)Prefix (Mr., Mrs., Ms., Dr., etc.):
3)First name:
4)Last name:
5)Business name(If Any):
6)Purpose of loan:
7)Date of birth (yyyy-mm-dd):
8)Gender:
9)Marital status:
10)Next Of Kin:
11)City:
12)State/Province:
13)Occupation:
14)Company name:(if Any )
15)Work address:
16)State/Province:
17)Zip/postal code:
18)Country:
19)Phone:
20)Fax:
21) Amount Needed As The Loan.......
22) duration

E-mail:cindyleonandofirm@hotmail.co.uk
cindyleonanoloanfirm2@yahoo.gr

Thanks For Your Co-operation
Mrs. Cindy Leonando
(Loan Agent)



Commentary:
Among the garbage that clutters the average email inbox, it is not uncommon to see unsolicited emails offering low interest loans to recipients. Typically, the messages claim that unsecured loans are available for virtually any purpose and urge the recipient to "apply" via email.

The emails are not loan offers at all, but rather just one more version of the ubiquitous "Nigerian" or "419" advance-fee scam. Those who fall for the bait and apply for the offered "loan" will soon receive a reply advising them that their application has been successful. Sooner or later the scammers will claim that the victim must pay certain specified fees before their loan transaction can be completed. The scammers have a variety of ready-made excuses explaining why these fees are necessary and cannot be avoided. They may claim that the money is to cover application fees, insurance fees, bank fees, tax fees or any one of a host of other entirely fictional charges. Typically, the scammers will keep asking the victim to pay further fees until he or she finally realizes what is actually happening and stops sending money. Of course, the victim will never receive a cent of the promised loan and is quite unlikely to recover any money that he or she has already submitted.

In a sinister variant of this scam, the scammers will send their victim a cheque, ostensibly as part-payment of the loan. The victim will be instructed to bank the cheque and then wire a specified portion of it back to the scammers to cover transaction fees. In some cases, the scammers may send a money order rather than a cheque. However, the cheque or money order will later turn out to be stolen or forged. The transaction trail will lead police directly to the victim and he or she may be held responsible for receiving stolen funds and be left out of pocket as well. Like money-transfer job scams and lottery cheque scams this ruse offers scammers an effective means of laundering their ill-gotten gains.

The scammers may also try to collect enough personal information about their victim to allow them to steal his or her identity. In the above example, the scammers request quite a lot of information as part of the bogus loan application. During the course of their subsequent dialog with their victim, they may try to gather even more sensitive information until they have enough to commit identity theft.

It is not difficult to recognize bogus loan offers such as these. No legitimate financial institution would randomly offer unsecured loans by distributing unsolicited emails. Legitimate lenders who advertise their services on the Internet are likely to have an official website offering more information and publish contact information such as phone numbers and an office mailing address. And they almost certainly would not use a free web-based email account such as Gmail or Yahoo to contact potential clients.

Like other versions of the Nigerian advance fee scam, the best way to deal with these bogus loan offer emails is simply to delete them. Do not reply to such emails or respond to them in any way.

Another example:
Subject: Are You In Need Of A Loan???

Hello,

I am Mr Joseph Maxwell from Joseph Loan Agency, we are a registered and approved loan lender, we have some amount of money to give out as a loan to any interested persons for any purpose as low as5% interest rate.if you need a loan,such as student loan, personal loan, secured and unsecured loan, long and short term loan, car loan and any kinds of loan.

For more information and advise please contact us via e-mail:
josephloanagency@gmail.com

Sincerely,
Joseph Maxwell.


References:
Payment Transfer Job Scam Emails - Laundering Scams
Lottery Cheque Scams
Nigerian Scams - 419 Scam Information

Last updated: 26th September 2007
First published: 26th September 2007

Write-up by Brett M. Christensen

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