BBB Warning: Beware Online Loan Scams

Do some careful research in advance and to use extreme caution when applying for a loan online

BBB serving Vancouver Island is warning consumers to do some careful research in advance and to use extreme caution when applying for a loan online.

BBB was recently contacted by a consumer that claims to have lost nearly $7,000 to fraudsters pretending to offer online loans through a company using the name Business Fund Group. The fake loan company set up a website with a fake address in a popular local business centre in Oak Bay. The victim paid thousands in “fees” that were supposed to secure the loan, as well as cover legal and insurance fees. Once the fees were paid to the fraudsters the fake company removed its website, disconnected its phone and disappeared with the money, leaving the victim with no loan and in greater debt.

Tips to consider:

  • Carefully research the company first.

  • Locate the company.

  • Get it in writing.

  • You should not have to pay a fee to get a loan.

  • Never wire money.

  • Use common sense.

Visit bbb.org/Vancouver-island.