What are the red flags of this scam?

The lender guarantees loan approval regardless of your credit score or employment history — real lenders always assess risk first • You are asked to pay an upfront fee described as 'insurance,' 'processing,' 'admin,' 'collateral deposit,' or 'tax' before the loan is released • The lender is reached only through a Facebook ad, Instagram DM, WhatsApp message, or a Kijiji post — no physical address or registered business • Payment is demanded by Interac e-Transfer to a personal email, a prepaid card, gift cards, or wire — never through the lender's official portal • The website has a slightly misspelled domain, generic stock photos, and no provincial licence number or verifiable business registration • They ask you to keep the loan application 'confidential' to avoid triggering bank scrutiny or because the loan is 'under review by the government' • After paying the first fee, additional fees appear — another 'insurance top-up,' a 'disbursement tax,' or a 'release charge'

What should I do if this happened to me?

Canadian law (the Consumer Protection Act in most provinces) prohibits any lender from charging an upfront fee before issuing a loan — anyone who asks for advance payment is committing fraud • Verify any lender you found online: check FCAC (fcac-acfc.gc.ca) for licensed lenders, or search the lender's name on AMF (lautorite.qc.ca) in Québec or FSRAO (fsrao.ca) in Ontario • Do not pay any upfront fee — even if you have already paid one, stop immediately; additional fees are the second and third layers of the same scam • If you have already sent money: call your bank or credit union at once to attempt a recall; report to the Autorité des marchés financiers (AMF Québec) at 1-877-525-0337 or the FSRAO Consumer Services Centre at 1-800-668-0128 for Ontario • Report to the Canadian Anti-Fraud Centre at https://antifraudcentre-centreantifraude.ca or call 1-888-495-8501.

HIGH loan Last reported: Oct 3, 2026 Share

An online lender offers a loan regardless of your credit — but collects an upfront fee and never sends the money

Q: Is this a scam?

Yes. This is a documented scam pattern. An ad or social media message promises a personal, car, or mortgage loan at attractive rates regardless of credit history — but asks for an upfront "insurance," "processing," or "collateral" fee before releasing funds. After paying by e-Transfer, gift card, or wire, the loan never arrives. It is illegal in Canada to charge an advance fee before issuing a loan.

An ad or social media message promises a personal, car, or mortgage loan at attractive rates regardless of credit history — but asks for an upfront "insurance," "processing," or "collateral" fee before releasing funds. After paying by e-Transfer, gift card, or wire, the loan never arrives. It is illegal in Canada to charge an advance fee before issuing a loan.

Also known as: advance fee loan scam Canada, fake online lender Canada, guaranteed loan scam Canada, bad credit loan scam Canada, fake mortgage broker Canada, social media loan scam Canada, no credit check loan fraud Canada

Already happened to you? Do this in the next few minutes

1 Call your bank or card's fraud line right now. Use the number on the back of your card — not any number from the message or caller. Ask them to stop or reverse the payment and freeze the account.
2 If you paid by gift card, wire, or an app (Zelle, Venmo, Cash App): contact that company immediately and report it as fraud. Acting fast sometimes recovers the money.
3 Report to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov. The sooner, the better.

What to do right now

1 Canadian law (the Consumer Protection Act in most provinces) prohibits any lender from charging an upfront fee before issuing a loan — anyone who asks for advance payment is committing fraud
2 Verify any lender you found online: check FCAC (fcac-acfc.gc.ca) for licensed lenders, or search the lender's name on AMF (lautorite.qc.ca) in Québec or FSRAO (fsrao.ca) in Ontario
3 Do not pay any upfront fee — even if you have already paid one, stop immediately; additional fees are the second and third layers of the same scam
4 If you have already sent money: call your bank or credit union at once to attempt a recall; report to the Autorité des marchés financiers (AMF Québec) at 1-877-525-0337 or the FSRAO Consumer Services Centre at 1-800-668-0128 for Ontario
5 Report to the Canadian Anti-Fraud Centre at https://antifraudcentre-centreantifraude.ca or call 1-888-495-8501.

Red flags

⚠ The lender guarantees loan approval regardless of your credit score or employment history — real lenders always assess risk first
⚠ You are asked to pay an upfront fee described as 'insurance,' 'processing,' 'admin,' 'collateral deposit,' or 'tax' before the loan is released
⚠ The lender is reached only through a Facebook ad, Instagram DM, WhatsApp message, or a Kijiji post — no physical address or registered business
⚠ Payment is demanded by Interac e-Transfer to a personal email, a prepaid card, gift cards, or wire — never through the lender's official portal
⚠ The website has a slightly misspelled domain, generic stock photos, and no provincial licence number or verifiable business registration
⚠ They ask you to keep the loan application 'confidential' to avoid triggering bank scrutiny or because the loan is 'under review by the government'
⚠ After paying the first fee, additional fees appear — another 'insurance top-up,' a 'disbursement tax,' or a 'release charge'

Already happened to you? Do this in the next few minutes

What to do right now

Red flags

Sources