Common scam mechanics
Fraudsters may describe the payment as insurance, processing, paperwork, a security deposit or a way to guarantee approval. They may also use unsolicited texts or calls claiming a borrower is already preapproved.
Data theft can be part of the fraud
Fake loan offers can be designed not only to obtain money but also to collect Social Security numbers, bank account details and other identity information. That means a “loan” can create both immediate payment loss and longer-term identity-theft risk.
Evidence type
FTC guidance and alerts are authoritative descriptions of scam patterns, but they are not prevalence studies. AppLoans classifies them as contextual evidence rather than using them to estimate how many loan offers are fraudulent.
Where this connects
Use the scam warning signs, advance-fee scam guide and loan-app verification checklist.
Primary sources
What To Know About Advance-Fee Loans
Federal Trade Commission · Current consumer guidance
Primary federal consumer-protection guidance describing common advance-fee loan scam patterns and warning signs.
Can you spot a fake loan text scam?
Federal Trade Commission · 2026
Current FTC alert on unsolicited loan-text scams and requests for sensitive personal or banking information.