Scammers target desperate victims who are struggling to pay bills: BBB

Fraudsters are using the challenging economy as leverage to get into the wallets of unsuspecting victims, says a consumer protection agency.

The Better Business Bureau serving Southern Alberta and East Kootenay says scammers have been disguising themselves as money lenders and reaching out to consumers directly with offers of loans.

The agency says the money is linked to a condition that a fee must be paid by the recipient, but once that cash is sent, the scammer disappears and no loan is ever dispensed.

"The past two years have been very challenging economically," admits president and CEO Mary O'Sullivan-Andersen in a release.

"Many of us were compelled to borrow money to get by. Unfortunately scammers took advantage of these circumstances."

The BBB says consumers in southern Alberta, as well as across Canada, lost millions to these types of scams in 2021.

O'Sullivan-Andersen says that victims in these situations often don't report them to authorities.

"The research that BBB carries out indicates that only five per cent of people who are victims make a report," she said.

"This means advance fee loan scams could be costing Canadians hundreds of millions of dollars in any given year."

The BBB suggest consumers review the following guidelines to avoid being scammed:

• Watch for any requirements to pay fees in advance before accessing loans;
• Unsolicited offers of money through email, text or phone calls are always red flags;
• The so-called lenders are not based in the province where you live;
• There are promises of "no credit checks" and "loan approvals are guaranteed"; and
• You cannot determine if there is a physical location of the business offering the loans.

O'Sullivan-Andersen says anyone who finds themselves in a dire financial situation has options.

"Talk to your bank, credit card company or a reputable credit counselling organization. There are solutions even when things seem hopeless."