FTC Issues Urgent Warning: Scam Robocalls About Fake Loan Applications Are Surging
By Priyashah, World-Today-News.com - November 8, 2023
(Washington D.C.) – The Federal trade Commission (FTC) is alerting consumers nationwide to a dramatic increase in illegal robocalls falsely offering loan applications. These scams are designed to steal your money or personal information, and are becoming increasingly sophisticated, according to experts.
Reports indicate individuals are receiving multiple calls daily – between five and twenty from different numbers – regarding loan applications they never submitted. Scammers create a sense of urgency, claiming the “loan” is pending but requires further information to finalize.
Don’t Engage: The Golden Rule
“According to the FTC, people all across the country are getting calls and calls and calls about their supposed loan application that they haven’t applied for,” explains Herb weisbaum, a contributing editor wiht Consumers’ Checkbook. His advice is blunt and crucial: hang up instantly.
And critically, never, ever press any numbers prompted by the robocall, even if offered as an option to be removed from their call list.
“don’t press the number to unsubscribe,” Weisbaum warns. “That only confirms to the dishonest company that your number is active and they will likely call you more often.”
How the scam Works & What’s at Risk
scammers leverage urgency and a pretense of helpfulness to keep you on the line. One recent example, received by a WTOP staffer, stated: ”The (loan) approval window is closing soon… I’d like to help you get it wrapped up now while everything is still in motion.”
Once engaged, scammers have two primary goals:
Financial Theft: They will attempt to obtain your credit card number or other financial details.
Identity Theft: They will steal your personal information for fraudulent purposes.
“They’re trained, and they know the longer they keep you on the phone line, the more likely you are to do what they want,” weisbaum emphasizes. He cautions against providing any information, even if you simply want to end the call. “You don’t have to give them information to get off the phone. Just hang up!”
Understanding Robocalls: What’s Legal and What’s Not
A robocall is defined as a call delivering a pre-recorded message, often used for sales pitches or to solicit personal data. According to the FTC, robocalls are illegal unless the company has your explicit written permission to contact you for sales purposes.
Legal robocalls are permitted in specific circumstances:
Surveys: Calls conducting legitimate surveys.
Informational/Charitable: Calls providing purely informational updates or soliciting charitable donations.
Political Campaigns: Calls related to political campaigns (without a sales pitch).
Debt Collection: Calls from legitimate debt collectors if you actually owe the debt.(You have the right to demand they stop calling.)
“If you haven’t given the company permission to call you, and the robocall is not purely informational… that call is illegal, and it’s probably a scam,” Weisbaum clarifies.
The Do Not Call Registry: A Limited Defense
while registering for the National Do Not Call Registry (https://www.donotcall.gov/) can reduce calls from legitimate businesses, it won’t stop scammers.
“The scammers don’t care about that,” Weisbaum states. “It’s significant to be on the Do Not Call list, but it won’t prevent illegal robocalls from bad actors.”
Key Takeaway: Protect yourself by being vigilant and remembering: **if you recieve an unsolicited call about a loan