Payday loan company warns of potential fraudsters

The short term loans company “Lending Stream” has put out a public warning to customers and the general public about the increasing possibility of fraud perpetrated by people who pretend to be legitimate instant cash loan or personal loans lenders.

The public warning was issued not long after a report issued by the British based National Fraud Authority which indicated that there had already been a significant rise in cases of telephone banking fraud this year compared to the same period last year.

The increase in the incidences of fraud was estimated to be over thirty percent higher than twelve months ago, with losses due to the fraud cases being greater than £16 million.

It appears that the fraudsters are becoming smarter at finding ways of cheating people out of their cash. Most of the fraud cases appear to be initiated by telephone calls by people who pretend to be from a legitimate short term loans company.

Lending Stream’s spokesperson said that real short term loans companies do not make telephone calls to people who are not already one of their customers so the best advice to anybody who receives one of these fake phone calls form a company that they have had no dealings with is to simply hang up. If the phone call appears to come from a well known company then the advice is to hang up and call the company directly to find out if they have been genuinely soliciting their loans deals.

The fraud works by an offer of a large loan of several thousand pounds. However, the caller then asks for details of the person’s bank account, supposedly to “verify” the potential borrower to enable the “loan” to be made possible.

Further advice given to anybody who is tempted by the “offer” given over the phone is to contact an instant cash loan company directly. As Lending Stream says, the majority of the legitimate short term loans companies have an online application process which is quite straightforward and above board. There is simply no reason to allow oneself to be tricked into giving personal details away over the phone.

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