Coup of the fake loan: how to identify and protect yourself

Fake loan scam

"How are you, Ms. Maria? This is João, I'm a representative of X Financeira. I have a loan proposal for you that has been approved for R$1,400,000 in 12 installments. Are you interested in continuing?"

At first, in times of financial hardship, some offers are so irresistible, especially those that seem too good to be true. But if you've ever received this message, you've probably been on the verge of falling for a scam.

Thus, a survey by Serasa showed that in the first half of 2021 alone there were more than two million fraud attempts, an increase of 15.6% compared to the same period in 2020.

The criminals' method of operation, in short, involves offering the loan amount quite easily, requesting the victim's documentation, sending a fake contract, and demanding some type of advance payment.

First, pay attention to the signs.

So, to help protect you and avoid even greater problems, we've prepared some important tips for you:

#1 Search for information

Typically, criminals operate through companies that have a CNPJ (Brazilian corporate tax ID) and address, but are not authorized to provide such financial services. Whenever you're approached with a loan offer, do your research to ensure the company's credibility. On the website Central Bank you can find all regulated and supervised institutions that are authorized to provide consumer credit.

#2 Beware of WhatsApp

The preferred means of contact for fraudsters is WhatsApp. Criminals contact you directly by phone, offering fixed loan installment amounts and requesting payment in advance to release the funds into your account. Avoid this approach! And also, never provide verification numbers to third parties, as this allows your WhatsApp account to be cloned and opens the door to further scams—but in your name!

#3 Advance deposit is illegal

Reputable banks and financial institutions don't ask for any kind of advance deposit, as it's illegal and the Central Bank doesn't allow it. If you're pressured to do so, back off; it's a sign of a scam. The main excuses scammers give are the IOF (Tax on Financial Transactions), loan insurance, and exchange rate fees. Don't pay.

#4 Do not send your documents

In fraudulent proposals, criminals often claim that the loan proposal has been approved and that all that's needed is to submit personal documents to complete the contract and complete the transaction. In reality, fraudsters want this information to commit other scams. So, don't provide your details. Documents should always be submitted directly through the financial institutions' official websites and apps.

Did you take note of these tips? Now you're prepared to stop being a victim of criminals.

Enjoy and share this information with friends and family.

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Fake loan scam