Tell-Tale Signs You’re Being Targeted by an Advance Payment Scam

Spot advance payment scams with ease. Know the signs and protect your money from online fraudsters.
Tell-Tale Signs You’re Being Targeted by an Advance Payment Scam
2 minutes read
05 Jan 2021

Key Takeaways:

  • Advance payment frauds involve asking victims for a small sum of money to claim big rewards
  • Intimidating communication offers too good to be true and pressure tactics are clear giveaways of this fraud type

Today’s world is digitally connected and is fittingly termed an ‘online world’. While this has its own convenience and ease, it has also given rise to frauds and scams owing to the speed and anonymity of social media, e-mail, and the web as a whole.

Multiple types of cyber frauds are being committed these days and a common way to be duped online is through the advance payment scam.

What is the advance payment scam?

The advance payment scam is when a scammer tricks the victims into paying them money in advance in return for multiple opportunities like a service, goods, loans etc. It could be for a lottery, a service, goods, a guaranteed employment opportunity, a loan, and more.

The advance fee loan scam is quite common and falls under this scam blanket. Debt-ridden people are identified and offered ‘guaranteed loans’ with front processing fees. These callers impersonate employees of reputed lending institutions such as Bajaj Finserv and promise a loan, regardless of the person’s credit history for an advance fee.

In all the scenarios, once the supposed ‘application fees’ or ‘processing fees’ are transferred, the scammer is nowhere to be found. You will never receive that large sum of money, that lottery money, the job, or the loan that was promised to you.

Tell-tale Signs of an Advance Payment Scam

Any scheme that involves transferring or depositing money in advance for a greater benefit post that, should raise a red flag. Common giveaways of this scam are:

Guaranteed Job Opportunities – Fraudsters offer lucrative jobs that require an upfront payment – they pretend to be recruitment consultants or the HR from the actual company. Please note that no ethical operational firm in India can guarantee a job just by paying a sum. Before being hired, multiple rounds of interviews and evaluations are conducted.
Winning a lottery or prize - Here, you receive a communication that you have won a lottery, a free trip for two, or received an inheritance. However, to claim either, you will be required to transfer a small sum of money before you can get a hold of your winnings.
Official Impersonation Frauds – Impostors pretend to be from the law enforcement team or tax department and claim that you are in trouble for withholding taxes or pending fines. They ask you to pay back money to avert being prosecuted or being arrested.
Advance-Fee Loan Scam - The modus operandi of the advance fee loan scam involves impostors who call you and guarantee a credit no matter what your credit history is. They gain confidence by confirming a few personal details that they have gathered from various social profiles of the victim and information on the internet. They use terms like ‘past not a problem’, ‘hassle-free, ‘no documentation required’, ‘guaranteed loan’ etc., and just make you believe that you deserve that loan.

Legitimate lenders always check your CIBIL score, require ID proof and documents, and have eligibility criteria before disbursing a loan. If there is a processing fee, it is communicated to you and adjusted in your repayment schedule. Easy loan for an advance fee for ‘processing’ or ‘paperwork’ is a clear sign of an advance fee loan scam.
If you are being rushed and pressured into taking action and the offer being made is too good to be true – you are being conned. Report the matter immediately!

Urgency tactics used to conduct this scam

  • First-come first-serve, limited employment opportunities
  • You are under investigation
  • Your account has been suspended or blocked
  • You can only get the loan if you transfer the processing fee within 24 hours
  • Prize or lottery money will expire by the end of the day

When you are being rushed, take a step back and investigate the matter thoroughly.

What to do if you have been scammed online and paid up?

If you have lost your money to an advance payment scam or advance-fee loan scam or have received any unsolicited and unverified communication, report it at www.cybercrime.gov.in or call the national helpline number at 155260.

By reporting these scammers, you can assist law enforcement to curb their activities and help others stay alert and exercise caution.
Remember, it is better to be safe than sorry.

Savdhaan Rahein. Safe Rahein.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

Why do scammers ask for money upfront?

Scammers demand upfront payments to exploit victims quickly before disappearing. They often promise loans, jobs, or lottery winnings to create urgency and legitimacy. Once the victim pays, the scammer vanishes or continues asking for more under false pretences, leaving the person financially and emotionally affected.

How can I tell if a payment request is a scam?

Red flags include unsolicited messages, promises of unrealistic returns, pressure to act quickly, or requests for secrecy. Scammers often ask for payment via gift cards, wallets, or untraceable methods. Verify the identity and credentials of the requester and avoid making payments without proper documentation or assurance.

Are loan scams related to advance fee frauds?

Yes, loan scams are a form of advance fee fraud where fraudsters ask for processing fees, security deposits, or insurance charges before disbursing a fake loan. Once the victim pays, the scammer disappears or delays endlessly. Legitimate lenders never ask for large fees before loan approval.

Where can I report an advance payment scam in India?

Advance payment scams can be reported through the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or by calling the helpline 1930. You can also approach the nearest cybercrime police station. If the scam involved a financial platform, notify the concerned bank or digital payment service immediately.

Show More Show Less