Scammers circle as living costs rise

Scammers are looking to prey on financially vulnerable households seeking loans as living costs surge, the City regulator is warning.

The Financial Conduct Authority (FCA) is receiving a growing number of calls about loan-fee fraud, when people pay fees up front for loans that they never receive.

Instead of getting the loan they were hoping for, those struggling with their finances end up even worse off – losing £280 to the scam on average.

Victims tend to be aged 25 to 45, are slightly more likely to be male (60%) than female (40%) and often work in manual occupations or are unemployed, according to the regulator.

Warning signs of the scam include:

Being asked to pay a fee up front;

Being asked to pay quickly; Being asked to pay in an unusual way, such as by vouchers or a money transfer.

People are being urged by the regulator to use the FCA Register to check who they are dealing with.

Never pay a loan fee up front