How to Avoid Credit Repair Scams

Fraud Article in Aqua

In the digital age, online scams have become more sophisticated, with fraudsters finding new ways to exploit unsuspecting victims. Cadence Bank has recently seen an uptick in one such scam. It involves the offering of loans online, presented as “Credit Builder” loans.

How the Scam Works

The scam begins with the fraudsters offering someone a “credit builder” loan online and then promising customers they will receive “loan proceeds” via a wire transfer. 

In order to receive their “loan proceeds,” customers are asked to provide their online banking credentials to the scammers. This is a big red flag. No legitimate financial institution or lender will ever ask you for your online banking credentials.

Fraudulent Deposits

Once the fraudsters have access to the customer’s banking information, they deposit numerous checks into their banking account via mobile deposit. (The deposits are often multiple small dollar deposits of checks appearing from sources not typical for loans, such as an insurance company.)

Bogus Instructions

The bogus “loan officer” then instructs the customers to access and use the loan funds via CashApp.

However, within 2-3 days after the deposit, the checks that were deposited to their bank accounts are found to be fraudulent, creating a loss for the customer who may have already spent the funds.

Protect Yourself at All Times

To protect yourself from such scams, remember the following tips:

  • Never share your online banking credentials with anyone.
  • Be wary of loan offers which ask you to pay, transfer or receive funds via P2P platforms like CashApp. 
  • Always vet and verify the legitimacy of a lender before providing any personal or financial information.

Remember, if an offer seems too good to be true, it probably is. Stay vigilant and protect your finances. If you suspect you’ve been victimized by such a scam, contact Cadence Bank immediately.

Visit the Cadence Bank Fraud and Security Center to learn more about how we actively protect you and your finances from fraudsters and scams.

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.

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