The Securities and Exchange Commission (SEC) has issued a cautionary notice to the public regarding a growing trend of individuals impersonating registered financing or lending companies.
These deceptive practices, referred to as “advance fee scams” by the SEC, typically involve fraudulent financing entities promising loans while insisting on an upfront deposit or advance fee from borrowers.
According to the SEC, victims often find themselves added to group chats alongside fictitious borrowers who claim to have successfully obtained loans from the same company. However, once the advance fee is handed over, the fraudulent lending entity disappears without disbursing any funds.
The SEC has emphasized that such fraudulent activities are frequently carried out via Telegram and other social media platforms.
The SEC has also cautioned that legitimate lending or financing companies do not require borrowers to pay deposits, processing fees, or advance payments before approving loans.
In conclusion, the SEC urges the public to exercise vigilance and avoid falling victim to these misleading tactics.
