The Central Bank has today issued a warning about a "ruthless" scam that is targeting consumers looking for cash loans from online providers.
The Central Bank said it was seeing an increasing number of cases of "advance fee fraud" which targets customers of high cost credit providers - previously known as moneylenders.
Advance fee fraud convinces victims to pay an upfront fee which it claims is required to release a loan or larger payment.
The scam targets consumers applying for cash loans, offering them a cash loan in exchange for an upfront fee or an administration fee to apply for a loan.
The Central Bank said that high cost credit providers regulated by it are not allowed to charge any administration fees to apply for a loan.
According to the regulator, a person dealing with a regulated HCCP will never have to pay a fee up front before getting a loan, or have to pay a fee to "release" the loan or loan documentation.
"If you are asked to pay a fee, you should not use that provider as it is likely to be a scam. If you share any payment details with these providers, you are at risk of losing significant amounts of money," the Central Bank cautioned today.
Director of Consumer Protection at the Central Bank, Colm Kincaid, said this scam was an especially "ruthless" one as it targets people looking for high cost credit, which is often used by people managing other financial challenges.
"Beware of any firm that looks for an upfront fee from you. There are rules in place that mean no legitimate high cost credit provider can ever charge you an administration or application fee for a loan. If you are being charged a fee, you should immediately walk away and stop engaging with that firm," Mr Kincaid advised.
"In some cases, we have seen websites that have been cloned from legitimate providers. So even in cases where no fee is charged, you should still check our register to ensure the provider you are dealing with is regulated by the Central Bank, which provides you with a number of protections," he added.
He said the Central Bank will continue to be vigilant to identify and deal with scams of this nature, and engage with An Garda Siochána to combat it.
