BBB Scam Alert: Loan processing phishing scams

St. LOUIS, Mo. – Better Business Bureau® (BBB®) is warning consumers about a phishing trend where scammers pose as representatives from loan processing companies.

In this twist on phishing scams, fraudsters are making harassing phone calls and insisting they need to verify “minor details,” such as your income, to finalize a loan application.

Nationally, BBB has received over 1,500 Scam Tracker reports about scammers claiming to be loan processing reps named “Jessica” or “Evelyn.”

They will sometimes say they’re calling from the “West Coast branch” of Lending Union (which is not a real company).

The callers can be aggressive – several of the people who reported this scam to BBB St. Louis said that they were receiving multiple calls per day. Some reported that the calls sound pre-recorded or follow a script.

“If you’re contacted about a loan application you don’t recall submitting, hang up and do your research,” says Pamela Hernandez of the Springfield, Missouri Better Business Office.

“Look up the company  name online and contact them directly, using verified contact information,” she adds.

A Kirkwood, Mo. consumer reported this year that he had been receiving daily recorded voicemails from “Jessica” for over two months. He said that the caller ID number changed frequently and that the recordings pressured him to call back by 5 p.m. Pacific time the same day.

The consumer was suspicious of the calls because he knew he had not applied for any loans recently, but he mentioned that he had just applied for a loan earlier that year and may have been deceived if the scammers had called at that time.

“Keep careful financial records,” Hernandez states.  “If you’re applying for loans, keep detailed records of what you applied for, when you applied, the companies you’re working with and the official ways they will contact you.”

She says if you think you have been ripped off, you should contact BBB.org.