How to spot a loan scam before it costs you
Fake lenders go after people who need money fast. Learn the order-of-payment test, check any lender in two minutes, and know exactly what to do if you've already paid.
Money reaches you first.
You're asked to pay first.
The rule: a lender that asks you to pay before you get a loan is not a lender.
The most common loan scam asks for an upfront fee before funding. Real lenders never ask for gift cards, wire transfers, crypto or fees to release a loan. Verify licenses at nmlsconsumeraccess.org and report scams at ReportFraud.ftc.gov.
How a loan scam usually unfolds
- An offer finds you. An unexpected call, text, email or ad promises fast approval.
- Approval is "guaranteed." Credit, income and history supposedly don't matter.
- A fee appears. Insurance, processing or a "good faith" deposit is due before funding.
- The payment method is unusual. Gift cards, wires, crypto or a payment app to an individual.
- More fees follow, then the "lender" goes silent.
Red flags
Guaranteed approval
No real lender approves before reviewing your information.
Fees before funding
Insurance, processing or "first payment" fees up front.
Odd payment methods
Gift cards, wire transfers, crypto or a person's payment app.
Pressure
"Offer ends in 10 minutes," or texts you didn't ask for.
Password requests
Your bank login, one-time codes or phone contacts.
No verifiable business
No license, no address, copied website.
Check a lender in two minutes
Tick each statement that's true.
Messages pretending to be GridMoney
Really us
- Email from @gridmoneycashadvance.com
- Never asks for payment
- Never asks for passwords
- Offers open on the lender's own site
Not us
- Gmail, Yahoo or look-alike domains
- A fee to "release" your loan
- Requests for login codes
- Gift card, wire or crypto payments
If you've already paid a scammer
- Stop all contact and send nothing more, even for a promised refund.
- Call how you paid. Your bank, card issuer, gift card company or transfer service may be able to stop or reverse it.
- Report it at ReportFraud.ftc.gov.
- Protect your identity. If you shared your SSN or bank details, go to IdentityTheft.gov and consider a credit freeze.
- Change passwords for email and banking if you shared any.
Common questions
What is an advance-fee loan scam?
A scammer promises a loan, often 'guaranteed,' then asks you to pay a fee first for insurance, processing or paperwork. After you pay, the loan never arrives and they usually ask for more.
Do real lenders ever charge upfront?
Legitimate lenders don't ask you to pay before you receive a loan. Fees are deducted from the loan or added to your balance and listed in writing.
How do I check a lender's license?
Search the company at nmlsconsumeraccess.org or on your state financial regulator's website, and look up complaints in the CFPB complaint database.
Will GridMoney ever ask me for money?
No. GridMoney is free and never asks for fees, gift cards, wire transfers or crypto. We only email from @gridmoneycashadvance.com addresses.
I already paid a scammer. What now?
Contact whoever processed the payment, like your bank or gift card company, right away. Report it at ReportFraud.ftc.gov, and if you shared personal details, visit IdentityTheft.gov.
Borrow safely
No upfront fees, ever. Every cost shown before you sign.