THE Securities and Exchange Commission warned the public on individuals pretending to be registered lending or financing companies who are pretending to offer loans but are asking for an 'advance fee' from the borrower.These lending companies would advertise themselves on social media to attract prospects. Those who are interested would chat with an agent who would then ask for the requirements such as ID, bank account/e-wallet, etc.
The scammers would claim that this advance fee is proof that the prospective borrower has the capacity to repay the loan. In some cases, they would show proof they are recognized by the SEC to gain the trust of the borrowers and eliminate any suspicion.The client's other companions in the chat would appear to comply with the requirement and after making the deposit, their loans would immediately be granted to further encourage the client to do the same.