Scam alert: Personal loan scams
19 Mar 2026
Scammers are setting up fraudulent websites offering personal loans. They are also posting online advertisements for their services on social media platforms.
Once your application for a loan is approved, you’ll receive an email requesting personal information and documents. You will also be directed to pay an upfront insurance fee before any funds are released.
Who’s at risk
- Anyone searching for a loan provider may encounter these scams
- People experiencing financial hardship may be particularly vulnerable
What this might look like
Scammers pose as financial service providers and loan brokers online. They create fake websites, post ads on social media platforms and contact people directly offering personal loans.
Once you apply for a loan online, the scammer will contact you by email or social media. They will send you a loan contract and ask you for personal identification documents such as photo ID, payslips, bank statements, and login details for banks and myGov.
They will also ask that you pay an upfront fee for ‘payment protection’ insurance or ‘loan establishment’ fees to secure the loan. They will not allow the amount to be deducted from the loan. Instead, they will require payment in full before any loan funds are released. They say this payment will be refunded after 3 months.
These scammers may impersonate existing Australian credit licence and financial service licence holders. They may even fraudulently quote ABN registration and credit licence information from ASIC to appear genuine.
Warning signs to look out for
- Communications that ask for your personal details and identification documents.
- Requests for upfront insurance payments that must be paid before loan funds are released.
- Requests to pay funds to a personal bank account.
- The loan provider is not licensed and does not appear on ASIC’s professional registers.
- The loan provider appears on ASIC’s investor alert list.
- Pressure to make payments and to pay in a particular way.
- Claims that insurance premium payments will be refunded after 3 months.
If you’ve been affected
• Don’t be embarrassed about being scammed.
• If you’ve had money or personal information stolen, contact your bank or card provider immediately.
• If you think your accounts have been compromised, change your passwords immediately.
• Monitor your bank statements and accounts for unusual activity.
• If you’ve been scammed or have provided personal information, call IDCARE on 1800 595 160.
• Help others by reporting to Scamwatch.
This report has been provided by Australian Government: ScamWatch email sent Thursday 19 March 2026.
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