Money & The Economy

Three Ways to Protect Yourself from the “Pay Upfront Scam” During a Holiday Cash Crunch

Many Pennsylvanians may find themselves looking for solutions to a cash crunch during the holiday shopping season. However, Pennsylvania’s Secretary of Banking and Securities Robin L. Wiessmann urges consumers to avoid the “pay upfront scam” for bogus loans or credit cards.

Wiessmann explains how this scam works:

  • The con artist will target people with poor credit histories by promising easy or “guaranteed” approval. However, to take advantage of the offer, the victim must pay high but seemingly legitimate fees for the application, insurance, or other “services.” In the end, the con artist takes off with the fee and the victim gets nothing in return.
  • People encounter advance fee scams in a variety of ways, including telemarketing calls, text messages, emails, well-designed documents, classified ads, and the Internet, including social media.

Wiessmann points to three strategies that can help consumers avoid being robbed by upfront payment scams:

  1. Avoid any credit offer that requires an upfront payment. Although a lender may charge application, credit report and other fees, they are generally subtracted from the loan amount after it is approved.
  2. If you are asked to pay fees via a wire transfer or prepaid debit card, especially to someone in another country, exercise caution. Such offers are normally a scam, and the payments are extremely difficult to recover or trace.
  3. Know who you are dealing with. If you have not heard of the person or company, take the time to learn more about them. Contact the Department of Banking and Securities at 1-800-PA-BANKS to ensure the lender is properly licensed to do business in Pennsylvania.

“I cannot stress enough that consumers are taking excessive risk by doing business with unlicensed, out-of-state lenders,” said Wiessmann. “Lenders licensed by the Department of Banking and Securities know Pennsylvania law and understand how they should treat their customers.”

In wrapping up the department’s “Holiday Scam Protection Week,” Wiessmann urges consumers to be informed. Know the “red flags” of scams and fraud and who you can contact if you believe you are a victim. Check out the publication: “Scams: Protect Yourself. Protect Your Money.”

“Although scams may take different forms, the underlying method is often the same: preying on emotions, circumstances, or lack of knowledge to take financial advantage of another party,” Secretary Wiessmann added. “Consumers and businesses cannot afford to take every financial opportunity or transaction at face value. This holiday season, everyone is going to have to be more diligent and investigate before investing their money or sharing personal or financial information.”

Rich Mitchell

Rich Mitchell is the editor-in-chief of Conservative Daily News and the president of Bald Eagle Media, LLC. His posts may contain opinions that are his own and are not necessarily shared by Bald Eagle Media, CDN, staff or .. much of anyone else. Find him on twitter, facebook and GETTR

Share
Published by
Rich Mitchell

Recent Posts

Can The Democrats Be This Ignorant On ICE Safety

The Democrats have been floundering since last year when the Biden/Harris election fiasco sent them…

5 hours ago

Burning Bridges?

Elon has been on an all-out assault against Trump. Like a petulant child, he’s reacting…

5 hours ago

Trump Lifts Regs On Drones, Supersonic Flight, Opens Door For Flying Cars

President Donald Trump signed several executive orders on Friday, lifting regulations on aviation technology and…

5 hours ago

Stacey Abrams’ Nonprofit Shelled Out $20 Million To Close Friend’s Law Firm: Docs

Former Democratic gubernatorial candidate Stacey Abrams’ nonprofit paid more than $20 million to her close…

6 hours ago

Kash Patel Says FBI Has Recovered Anthony Fauci’s COVID-Era Communications

Federal Bureau of Investigation (FBI) Director Kash Patel said on “The Joe Rogan Experience” Friday…

6 hours ago

California Democrats Take Another Shot At Subverting Trump’s Immigration Agenda

California Democrats are pushing through legislation that would make it incredibly more difficult for federal…

6 hours ago