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Safety6 min read

Loan scams cost Americans billions. Six red flags to know

Americans reported $15.9 billion in fraud losses in 2025. Fake lenders target people who need cash fast. Learn the six warning signs and what to do if you already paid.

Bison Cash USA editorial teamUpdated October 17, 2026Fact-checked against 3 primary sources

The short version

At a glance

Key takeaways

  • Consumers reported $15.9 billion in fraud losses to the FTC in 2025, up from over $12 billion the year before.1
  • The FTC received 3 million fraud reports in 2025. Imposter scams topped the list with more than 1 million reports.1
  • The biggest warning sign of a loan scam: being asked to pay before you get the loan.2
  • If you paid a scammer, act fast and report it at ReportFraud.ftc.gov.2

The scale

Fraud is growing

$15.9Breported fraud losses in 20251
3Mfraud reports in 2025, up from 2.6M1
$3.5B+lost to imposter scams1
20%of adults experienced fraud or a scam in 20253

Losses hit lower-income households hard. Among adults earning under $50,000 who were defrauded, the median loss was $400.3 For someone already short on cash, a fake loan offer can turn one emergency into two.

Warning signs

Six red flags of a fake lender

Guaranteed approval

Ads like “Bad credit? No problem” or “Guaranteed” are a warning sign. Real lenders check your credit and confirm your application before making a firm offer.2

$

A fee before you get the money

Scammers say you are approved, then demand money for “insurance,” “processing” or “paperwork” before releasing the loan.2

$$$

An unsolicited loan call

Telemarketers cannot promise you a loan and ask you to pay first. Hang up on recorded sales pitches.2

Gift cards, wires or crypto

Scammers ask for payment that is hard to get back: gift card numbers, wire transfers or cryptocurrency.2

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Not registered in your state

Lenders must register in the states where they do business. A lender you cannot find with your state regulator is a red flag.2

Fees hidden until you are hooked

Legitimate lenders disclose fees up front. Scammers reveal charges only after you have applied and been “approved.”2

How it unfolds

How an advance-fee loan scam usually works

  1. 1

    The offer

    You see an ad or get a call promising a loan regardless of your credit history.

  2. 2

    The “approval”

    You are told you are approved almost immediately, often without a real credit check.

  3. 3

    The fee

    Before the money is released, you are asked to pay for “insurance,” “processing” or “paperwork,” often by gift card, wire or crypto.

  4. 4

    The disappearance

    The loan never arrives. Sometimes the scammer asks for a second fee. Then the calls stop.

Before you apply

How to check that a lender is real

Signs of a real lender

  • Registered with your state attorney general or banking regulator
  • Checks your credit before making a firm offer
  • Discloses the APR, fees and payment schedule before you sign
  • Takes any fees out of the loan or adds them to it, never as a separate upfront payment

Hang up if you hear

  • “Guaranteed approval, no credit check”
  • “Pay a fee first to release your loan”
  • “Buy a gift card and read me the numbers”
  • “This offer expires in the next hour”

FAQ

Common questions

Do real lenders ever charge upfront fees?

Legitimate lenders may charge fees such as an origination fee, but they disclose it before you sign and usually take it out of the loan amount. They do not ask you to pay separately before the money is released.

Can a lender guarantee approval?

No legitimate lender can guarantee a loan before reviewing your application and checking your credit. A guarantee is a classic sign of an advance-fee scam.

Where do I report a loan scam?

Report it to the Federal Trade Commission at ReportFraud.ftc.gov, and contact the bank or company you used to pay as soon as possible.

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Sources

Sources for this page

Official and primary sources only. Last reviewed October 17, 2026.

  1. 1
    Federal Trade CommissionRegulator data
    FTC testifies to Joint Economic Committee on efforts to combat fraud
    ftc.govMarch 25, 2026 · 2025 fraud reports
  2. 2
    Federal Trade CommissionRegulator guidance
    What To Know About Advance-Fee Loans
    consumer.ftc.govScam warning signs
  3. 3
    Federal Reserve BoardSurvey data
    Economic Well-Being of U.S. Households in 2025: Fact Sheet
    federalreserve.govMay 13, 2026