Advance-Fee Loan Scams Often Target
Businesses
August 12, Midlands News Service – (National)

The number of fraudulent loan scams targeting small-business owners has
increased as more people seek alternative financing sources. The Federal Deposit Insurance Corporation (FDIC) and the national Better Business Bureau (BBB) recently issued warnings about advance-fee loan scams. Business owners have received unsolicited emails and phone calls from people promising to help secure financing in exchange for an up-front fee, said the president of the regional Better Business Bureau in Omaha. Some small-business owners have sought financing outside traditional banks
and lending institutions because it is more difficult to get conventional loans, according to a BBB press release. Fewer small businesses are meeting the criteria to get commercial loans, but it is not because banks are changing their lending standards, said the chairman-elect of the Nebraska Bankers Association. Financial institutions are “able and willing” to make most types of commercial loans, with the exception of certain real estate loans, he said. The issue is not a lack of access to viable commercial loans.

Current economic factors have negatively affected the creditworthiness of small businesses, which makes it more difficult for them to get a loan, the official said. The Internet has been a popular tool for some predators, according to the FDIC release. Scam artists have set up fake Web sites to lure potential borrowers, some using the logos of legitimate financial institutions and government agencies, according to the release.
Source: North Platte Telegraph > News