Overseas scam hits Australian shores

The Australian Securities and Investment Commission have warned borrowers to be vigilant as a new scam has cost borrowers around $33,000 in upfront payments for loans. These scammers have hacked legitimate websites of small lenders, setting up banner ads to offer fake loans.

Credit laws in Australia collect upfront costs only when the loan is advanced according to the loan contract, and not before the loan is set up. Lenders will not ask borrowers to transfer funds to a third party or an overseas account. The ASIC suggests investigating these sites thoroughly, as borrowers are misled by scammers who including genuine identifiers, such as credit license numbers but are redirected to an unregistered business or company. Only deal with companies that are available personally and have public contact details.

Read more about this on the Money Management website.