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Fraudsters impersonate government officials or lenders and claim your business qualifies for free money. They may target your business to get information, or ask you to pay upfront fees for a grant or loan you never applied for. Learn how to detect and protect yourself from business grant and loan scams.
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What you need to know
- Be wary of speed selling. Fraudsters may try to rush you through the process to get your information and avoid answering questions.
- Never pay money upfront to secure a grant or loan. A reputable lender won't charge you for an application.
- If you’re contacted randomly for a grant or loan that's been approved but you never applied for, it's most likely a scam.
What are business grant and loan scams?
This is when fraudsters pose as government employees or authorized lenders to target your business into paying upfront fees to receive a grant or loan. You're told that you're guaranteed approval prior to any credit check or financial review, and you're asked to pay upfront fees for credit checks or application processing. Often, fraudsters will contact businesses to tell them they're qualified or have been approved for a government grant or financial loan they never applied for.
- Be wary if you've gotten approved for a grant or loan prior to a credit check and financial review. Most fraudsters will try to lure you in with this tactic.
- Do a diligent search. Check if an online lender has a physical address or if their email address is from a reputable organization.
- Don't be afraid to hang up the phone. If you feel uncomfortable or uncertain about the person you're speaking to, search for a legitimate phone number and call them.
- Don't respond to unsolicited communication claiming to be from trusted business lenders or the government. This includes untraditional advertising, such as personal Facebook messages.
- Don't pay money up front to get a grant or loan approved. Legitimate lenders won't ask you to pay for a credit check, application or processing fees.
- Review a lender's offer and terms and ask questions. If the offer and terms are too good to be true, it's usually a scam.
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Contact us immediately if you received a suspicious email or notice any unauthorized activity on your account.
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