Warning about loan scams on social media

The Commission de Surveillance du Secteur Financier (CSSF) and the Directorate for Consumer Protection (DPC) warn the public of fraudulent credit offers on social media. Fraudsters create fake profiles, misusing the identity of banks or professionals of the financial sector to offer credits on extremely advantageous terms and with no financial constraints. Their sole objective is to defraud you of your money.

How does this scam work?

• Fraudsters create a fake profile using the name of a well-known bank or pretending to be a representative of that bank.
• They contact users via social media or post their fake/misleading offers in groups and comments (Facebook, WhatsApp and Instagram, etc.).
• After a first contact, they continue the conversation via email, using non-professional email addresses (Gmail, Outlook, Hotmail, etc.).
• Fraudsters ask for personal data (ID, bank details, address, etc.) and try to win your trust.
• They then require upfront payments under the pretext of administrative, insurance or credit opening fees. They can be very insistent, or even aggressive.
• Once the money has been sent, they cease any contact, making it nearly impossible to recover the funds.

How to avoid these scams?

• Beware of overly attractive credit offers on social media.
• If someone is claiming to represent a bank, contact the bank in question directly to confirm the information.
• Legitimate banks and professionals do not actively approach clients through social media.
• Never share your personal data with unknown persons.
• Block and report any suspicious profile to the platforms concerned.

In case of doubt, you may contact the CSSF via its contact form: https://www.cssf.lu/en/contacts/.