How to Spot Online Loan Scams Before You Apply
Upfront fees, gift-card payments, fake approvals, and the other red flags that mean you should stop and walk away.
The biggest red flag: paying first
Legitimate lenders don't ask you to pay before you get a loan. If someone asks for a "processing fee," "insurance," or "first payment" before funding, especially by gift card, wire transfer, payment app, or cryptocurrency, it's almost certainly a scam. The FTC warns about this pattern repeatedly.
Other warning signs
- Guaranteed approval. No real lender can promise approval before reviewing your information.
- No clear lender. You can't tell who will actually hold the loan.
- No physical or regulatory details. A lender won't say where it's licensed.
- Pressure to act now. Countdown timers and threats that the offer will vanish.
- Unsecured website. No HTTPS, or a web address that's slightly misspelled.
- Unsolicited contact. A call or text offering a loan you never asked about.
Check the lender
Search the lender's name on your state financial regulator's website to confirm it's licensed. You can also search the CFPB complaint database to see how it handles problems.
If you think you've been scammed
- Stop contact and don't send any more money
- Call your bank to stop payments and ask about reversing transfers
- Report it at reportfraud.ftc.gov
- If you shared your Social Security number, consider freezing your credit with the three bureaus
Bear Loans Online never charges you, never asks for payment, and states on every page that we are not a lender. Read more on whether we're legit.
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