Have you ever had a non-secured loan creditor ask you to pay for the insurance before you receive the loan? Unfortunately, this is a scam that we see more and more often. Scammers often tend to appear when the economic situation is more difficult.
In order to help you avoid this kind of scam, we will present below all the information you need to know to better protect yourself in case you become the target of the scammers.
This is how a credit insurance scam takes place. You are going to need a loan and, by magic, you come across the perfect creditor. The creditor is ready to lend you the same day, in addition to offering you an amount greater than the amount requested. How not to like that? You get everything you asked for and even more.
Then you will be asked to pay the credit insurance. Among the many lies that creditors use to force you to pay for credit insurance, the most common lie is that insurance outweighs the risk taken by the creditor. The cost of insurance varies from a few hundred dollars to a few thousand. They will also ask you to transfer the money either through a Cash Trans transaction or through a prepaid debit / credit card.
Remember, these people are professional hustlers who will try at all costs to convince you to pay for insurance. They will tell you that it is normal practice in the industry and that any other creditor will ask you the same thing. This is of course a lie. No honest creditor will ever ask you to send him money for insurance before he offers you the loan. You must never:
- Transfer money via Cash Trans
- Give the creditor the number of a prepaid card
- Pay any amount before receiving the loan
What will happen?
You must understand that once you send them the money, you will never find them again. If you send money to someone through Cash Trans or a prepaid card, it is difficult or impossible to trace and reverse the transaction. It is precisely for this reason that they ask that payment be made by one of these payment methods. These forms of payment are not regulated like other transactions, it is the perfect way to rip off someone.
What to do if one has been victimized?
If you believe you have been the victim of such a scam, you should contact the local police and the Canadian Anti-Fraud Center.