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July 1, 2025

CyberSecurity Source | Summer 2025

Cyber Security

What To Do If You've Experienced a Scam

As technology continues to improve, so do criminals’ tactics to scam people out of their hard-earned money. From tech support scams to cryptocurrency fraud, and so much more, these types of scams have unfortunately become an everyday occurrence, and victims are left trying to pick up the pieces. If you’ve fallen victim there are steps you can take to potentially lessen the impact. As soon as you realize you’ve experienced a scam, it’s important to take certain actions immediately to prevent monetary loss and identity theft.

With help from AARP, we’ve detailed key steps to protect your bank accounts, personal information, and find the support you need.

Immediately Cut Off Communication with the Scammer

You might be tempted to keep communicating with the criminal, hoping you can persuade them to return your money or that they’ll expose some information that will help law enforcement catch them. Scam prevention experts say continued communication is unlikely to help and could even worsen the situation.

Notify Your Bank and Credit Card Companies

Your bank and/or credit card company should be your first two calls, says Amy Nofziger, director of victim support for the AARP Fraud Watch Network. If scammers have already gained access to your bank account, the bank can change your account number to deny them further access. Check your recent credit or debit card transactions and contact your financial institutions if you spot any fraudulent charges.

You can check your CorTrust Bank account anytime by enrolling in Online Banking. Plus, you can setup alerts to be notified whenever changes happen to your account, such as alerts when debit card transactions occur. These tools offer a simple way to keep an eye on your accounts quickly and timely.

Change Your Passwords

Out of precaution it’s crucial to update all your passwords, and not just the passwords associated with compromised accounts. When changing be sure to use strong passwords, eight characters or more, including numbers and symbols.

Report The Scam

AARP recommends filing a police report with your local department and submitting the instance to the FTC at ReportFraud.ftc.gov.

Protect Your Credit

Routinely check your credit report and watch for unusual activity. If you see any, report it to the appropriate financial institution immediately. You may also consider freezing your credit report. This prevents scammers from opening new credit cards or making big purchases in your name. You can unfreeze it as needed for upcoming transactions. Visit IdentityTheft.gov for more information on how to stay safe.

How to Spot and Avoid Loan Scams Online

As more people turn to digital options for financial solutions, loan scams are becoming increasingly prevalent—making it necessary to stay vigilant. From emails offering guaranteed approval to flashy ads promoting personal loans without credit checks, scammers are preying on consumers in need of funds.

These scams often masquerade as payday loans, personal loans, or even business loans, and falling victim to one can have devastating financial consequences.

This guide will walk you through how online loan scams operate, what red flags to watch out for, and the steps you can take to protect yourself. Whether you're a consumer or a small business owner, arming yourself with knowledge is the first step to staying safe.

Falling victim to a loan scam can have far-reaching consequences. Below are some of the financial, emotional, and even legal issues you might face.

Direct Financial Losses

Some of the financial impact of a loan scam will be felt immediately. These can include the following:

  • Upfront Fees: Scammers often demand upfront fees for loan processing, application fees, or insurance, which are rarely refunded.
  • Unauthorized Withdrawals: In some cases, scammers may gain access to your bank account information and withdraw funds directly.
  • Credit Score Damage: Missed payments or defaulting on fraudulent loans can severely damage your credit score, making it difficult to obtain credit for essential needs such as housing, vehicles, or education.

Indirect Financial Losses

The long-term effects of a loan scam can stick with you for years. They can include:

  • Debt Burden: Legitimate loans taken out to recover from a scam can lead to accumulating interest and a growing financial strain.
  • Future Loan Challenges: A damaged credit score can significantly impact your ability to obtain future loans, even for necessary expenses.

Emotional Distress

Not all of the damage from falling victim to a scam is financial. There are also psychological and emotional repercussions as well:

  • Anxiety and stress: Falling victim to a loan scam can cause significant anxiety and stress. The financial and emotional burden of dealing with the consequences of the scam can be overwhelming.
  • Loss of trust: Scams can erode trust, making it difficult to navigate future financial transactions.
  • Embarrassment and shame: Victims may feel embarrassed or ashamed about falling victim to a scam.

Legal and Reputational Harm

You may also suffer from legal and reputational damage after a scam. Depending on their severity, these effects can also take a long time to recover from:

  • Identity theft: Loan scams can lead to identity theft, where scammers use your personal information to commit fraud or open accounts in your name.
  • Legal issues: Victims may face legal issues due to unpaid debts or fraudulent activities associated with the scam.
  • Damage to personal and professional reputation: In some cases, loan scams can damage a person's personal and professional reputation.

Common Characteristics of Loan Scams

While falling victim to a loan scam can cause serious long-term financial, emotional, legal effects, there are ways to protect yourself. Here are a few red flags to watch out for.

Unsolicited Offers

Be highly suspicious of unsolicited loan offers received through email, text messages, phone calls, or social media. Legitimate lenders rarely initiate contact with potential borrowers unless the borrower has applied for a loan.

Guaranteed Approval

Watch out for anyone claiming, “Guaranteed approval, regardless of credit history!” Since loaning money is a risk to a lender , no legitimate lender will guarantee approval regardless of your credit rating.

Hidden Fees and Unexpected Costs

Be wary of hidden fees, such as application fees, origination fees, or prepayment penalties. Ensure all fees are clearly disclosed and understood before agreeing to a loan. Most loans come with some fees, as it’s a cost of doing business. If a lender isn’t upfront about fees or requests payment before loan approval, it is likely a scam.

High-Pressure Sales Tactics

Avoid lenders who rush you to make a decision. Legitimate lenders will not use high-pressure sales tactics to coerce you into borrowing money. Be cautious of lenders who pressure you to make a decision quickly or who seem overly eager to lend you money. Legitimate loans require careful review and consideration.

Lack of Licensing or Certification

Verify the lender's credentials and ensure they are licensed to operate in your state. You can check the lender's credentials with your state's financial regulatory agency. If you can’t verify their certification, steer clear.

Tips for Avoiding Loan Scams

Once you know the red flags to watch for, you can take proactive steps to protect yourself from potentially falling victim to a loan scam.

Be Wary of Offers That Seem Too Good to be True

If a loan offer promises guaranteed approval regardless of credit history or offers extremely low interest rates with no strings attached, it's likely a scam. Legitimate lenders rarely offer "miracle" loans with no credit checks or income verification.

Never Share Personal Information with Unverified Lenders

Avoid sharing your Social Security number, bank account information, and any other sensitive data with any lender you did not initiate contact with. Many of these “special offers” are just another form of phishing attempts designed to steal your personal information.

Read All Loan Documents Carefully Before Signing

When you’re ready to take the plunge and borrow money, be sure to thoroughly review all loan agreements before signing. Understand all terms and conditions, including interest rates, fees, repayment terms, and any penalties for late payments. This is a legal agreement between you and your lender, so don't hesitate to ask questions if you don't understand something.

Use Caution When Dealing with Online Lenders

While online lending platforms can be convenient, it's crucial to exercise caution. Verify the legitimacy of the online lender and check their online reviews. Be wary of lenders that operate outside of your state or country.

Never Pay Upfront Fees

Legitimate lenders typically do not require upfront fees for loan applications or approval. These fees are generally either deducted from your loan or included in your repayment terms, never required upfront. If a lender requests an upfront fee, it's a strong indicator of a scam.

Trust Your Instincts

If something feels off, it probably is. Don’t proceed without verifying the lender’s credibility.

Ethical Lending Practices: What to Look for Instead

When borrowing money, seek out ethical and responsible lenders. These lenders will follow practices that are in your best interests.

  • Transparency and Honesty: Clear communication about loan terms and conditions with no hidden fees or deceptive practices.
  • Fair Interest Rates and Fees: Competitive rates without excessive fees or predatory practices.
  • Responsible Lending Practices: Assessing your ability to repay before loan approval and offering repayment options that align with your financial situation.
  • Customer Service: Responsive customer support addressing all questions professionally.
  • Data Privacy: Secure handling of sensitive personal information in compliance with regulations.

Protect Your Financial Future and Avoid Online Loan Scams

Before applying for a loan online, do your research and watch for red flags. Borrowing money is a serious decision with potentially long-reaching consequences. So before you dive in, know your credit score and borrowing needs, thoroughly research potential lenders, and don’t be afraid to ask for professional advice.

Loan scams are a growing threat, but with information and vigilance, you can stay protected. And don’t forget you have a valuable resource at your nearest branch. We’re here to help!