Loan fraud has two faces. In identity-based loan fraud, criminals use your name, phone number, or ID to borrow money you know nothing about, until collectors call. In advance-fee loan scams, a fake lender promises easy credit but demands a 'processing fee' first, then vanishes.
Stolen IDs and phone numbers are used to register for digital credit or guarantee loans.
The borrower disappears; the debt and the damaged record stay with you.
Fake lenders advertise instant loans, collect 'insurance' or 'processing' fees upfront, and never pay out.
Repayment reminders or collector calls for loans you never took.
Lenders with no physical address or licence asking for fees before disbursement.
Pressure to pay a fee 'today' to unlock a guaranteed loan.
Legitimate lenders deduct fees from the loan. They don't collect them in advance.
Guard your ID and SIM; report a lost ID so it can't quietly guarantee loans.
If a loan appears in your name, dispute it in writing with the lender and report it here and to the police.