How to Spot a Loan Scam

The most common loan scams

Almost every loan scam has the same core: a promise of money, followed by a request for payment or personal information before you get anything. The packaging changes. These are the versions borrowers report most often.

Fraud by the numbers

The FTC’s Consumer Sentinel Network collects fraud reports from consumers nationwide. In testimony on March 25, 2026, the FTC said consumers reported losing $15.9 billion to fraud in 2025, up from about $12.5 billion in 2024, across roughly 3 million fraud reports.

A June 2026 FTC report on impostor scams found that business impersonators took nearly $1 billion in 2025, with bank impersonators causing the highest reported losses in that group. That matters for borrowers, because a message that looks like it comes from a bank or lender is one of the easiest ways to get you to share account details.

How scammers get paid also tells you what to watch for. In its 2024 data, the FTC reported that people lost more money to scams paid by bank transfer or cryptocurrency than all other payment methods combined. Email was the most common way scammers reached people, followed by phone calls and then text messages.

Red flags: walk away if you see these

• A fee before you get the loanFor insurance, processing, paperwork or a “first payment.”
• Approval is guaranteed“Bad credit? No problem” before anyone checks your application.
• Gift cards, wires or cryptoA real lender never asks to be paid this way.
• Unsolicited calls or textsOffering a loan you didn’t ask for, often with a recorded pitch.
• Pressure to act nowThe offer “expires today,” or you’re told not to talk to anyone.
• No license, no addressThe lender isn’t registered in your state or won’t give a physical address.

Real lender vs. scam: side by side

How to verify a lender in five minutes

1. Check the license. Lenders must register where they do business. Search the company name or NMLS ID at NMLS Consumer Access, or ask your state attorney general or banking regulator.
2. Go to the source yourself. Type the lender’s web address or find its number independently. Don’t use links or phone numbers from a text or email you didn’t expect.
3. Search for complaints. Look up the company name and phone number with words like “review,” “complaint” or “scam,” as the FTC suggests.
4. Read the disclosure. A real offer includes a written Truth in Lending disclosure with the APR, finance charge and total of payments.
5. Refuse any upfront payment. If you’re asked to pay before you receive the loan, stop there.

Habits that keep you safe when you borrow

Scammers target people who need money quickly, because urgency makes it easier to skip a check. A few habits make you a much harder target.

• Start the conversation yourself. Apply through a lender’s or marketplace’s official site that you found on your own, not through a link in an unexpected text, email or social media message.
• Never share login details. No lender needs your online banking password or a one-time code sent to your phone. A request for either is a sign of an account takeover attempt.
• Read the APR, not just the payment. A real offer shows the APR, finance charge and total of payments in writing. A scam usually stays vague until you have paid.
• Slow down. Legitimate offers give you time to compare. If someone insists you decide in minutes, that pressure is the point.
• Check your credit reports regularly. Free weekly reports at AnnualCreditReport.com show accounts or inquiries you don’t recognize, an early sign that someone is using your information.
• Talk to someone you trust. Scammers often tell people to keep the deal secret. A second opinion from a friend, family member or nonprofit credit counselor can stop a costly mistake.

What to do if you’ve been scammed

Act fast. The sooner you report a payment, the better the chance of stopping or reversing it. The right first call depends on how you paid, according to the FTC.

Then protect your identity and report it

1. If you shared your Social Security number, go to IdentityTheft.gov to report it and get a recovery plan.
2. Freeze your credit at Equifax, Experian and TransUnion. It’s free to place and lift a freeze. An initial fraud alert is another option and lasts one year.
3. Change passwords for any account you shared, and turn on two-factor authentication.
4. Report the scam at ReportFraud.ftc.gov. If a real lender or bank was involved, you can also submit a complaint to the CFPB.

Riverstone’s promises to you

Riverstone is a loan marketplace, not a lender. These are the standards we hold ourselves and our network to.

If someone claiming to be Riverstone asks you for money, don’t pay. Email [email protected] and report it at ReportFraud.ftc.gov. We are not affiliated with any lender that uses a similar name.