Quick answer: In an advance-fee scam, a fraudster promises financing but requires an upfront payment. After payment, the loan does not arrive or more fees are demanded.
Common explanations
The fee may be described as insurance, tax, verification, security deposit or a release charge.
How to respond
Stop communicating, do not send payment, preserve evidence, contact the payment provider and report the incident to the appropriate fraud and regulatory authorities.
Important distinction
Some legitimate loans may include disclosed fees, but surprise payment demands before funding—especially through unusual payment methods—require independent verification.