Fraud prevention
Understanding Lending Fraud: Warning Signs and Prevention
Lending fraud can involve false documents, misused identities, or payments requested under misleading terms. Borrowers and businesses can protect themselves by slowing down and verifying who they are dealing with.
Warning signs to notice
- Pressure to pay an upfront fee to guarantee approval.
- Requests to misstate income, employment, assets, or the purpose of a loan.
- Unsolicited requests for sensitive information through an unfamiliar link.
- Terms that change unexpectedly or are not provided in writing.
Verify before sharing documents
Contact the lender using a trusted channel and confirm that the person and application are legitimate. Read all disclosures and compare them with what you were told. Do not sign blank forms or knowingly provide inaccurate information.
If you suspect fraud
Stop sharing information, save communications and documents, and contact the lender through an official channel. If you shared financial or identity information, consider additional steps to protect affected accounts and seek guidance from the appropriate authorities.
Browse Noven CreditUnion’s security resources for general fraud-prevention guidance.