Advance-fee loan scams ask for payment before you receive money. The FTC says that is the hallmark of a scam. In the Carolinas, verify the lender's state license, never pay by wire, gift card or crypto, and report problems at ReportFraud.ftc.gov and to your state's consumer protection office.
On this page
- The pattern
- Red flags
- Checks you can do in five minutes
- If you have been scammed
- Scams that follow Carolina events
- Where to verify in the Carolinas
- Protect yourself digitally
- What if you shared a code or password
- Real stories, anonymized
- How to prepare
- Teach the people around you
- Quick reference
- If you receive a suspicious call
- Frequently asked questions
The pattern
The FTC says it is illegal for a company to promise you a loan and ask for a fee before delivering it. A legitimate lender may deduct fees from the proceeds, but will not ask you to pay before funding.
Red flags
- Fee first. Upfront fees by wire, gift card or crypto.
- Guaranteed approval. Lenders cannot guarantee approval to everyone.
- No license number. Real lenders state it and you can check it.
- Pressure. Offers that expire in an hour.
- Contact you did not start. Texts and calls offering loans you did not request.
Checks you can do in five minutes
- Search the company name plus "scam" and "complaint".
- Check the license: North Carolina or South Carolina.
- Call the lender at a number you found independently.
If you have been scammed
Report it at ReportFraud.ftc.gov, to your state's consumer protection office and, if you paid by card, to your card issuer right away. In North Carolina, also tell the Attorney General's office.
Scams that follow Carolina events
Scammers watch the news. After hurricanes, floods and plant closures, borrowers get fake offers for relief loans, calls from companies claiming to represent a government program and door-to-door contractors who ask for large deposits. Before you answer any message, ask who contacted whom. Government disaster aid does not require a fee, and no agency will ask you for a gift card.
| Scam type | What it sounds like | What to do |
|---|---|---|
| Advance-fee loan | "Approved, pay a deposit to release funds" | Stop. Real lenders deduct fees from proceeds |
| Fake disaster aid | "Pay to speed up your FEMA application" | Apply only at official sites; no fee is charged |
| Impersonation of a lender | A text with a link and an urgent payment | Call the number on your statement |
| Loan modification for a fee | "We can lower your payments, pay first" | Contact your servicer or a HUD-approved counselor |
| Fake check | Payment for an expense, then a request to send part back | The check will bounce; do not send money |
Where to verify in the Carolinas
- North Carolina: check a lender's license with the Commissioner of Banks and report problems to the NC Department of Justice consumer protection office.
- South Carolina: check with the Office of the Commissioner of Consumer Finance and report general fraud to the Department of Consumer Affairs.
- Both states: report to ReportFraud.ftc.gov and your bank.
Protect yourself digitally
Use unique passwords and two-step sign-in on email and banking, because scammers who control your email can reset everything else. Be suspicious of any request to move conversation to a different app, and do not share one-time codes with anyone who contacts you.
What if you shared a code or password
Change the password immediately, ask your bank to review recent transactions and set alerts. If you shared a Social Security number, consider a free credit freeze with each bureau. The FTC's advice on advance-fee loans explains how these cons work.
Real stories, anonymized
A Fayetteville borrower received a text that said a loan was approved and that a $350 insurance fee was needed to release it. After paying with gift cards, a second fee was requested. A Rock Hill borrower found a lender through a social media ad that asked for a bank login "to verify income" and then drained the account. A Greenville borrower received a check for more than the amount of a supposed loan and was told to return the difference; the check later bounced. In each case, the red flag was a request to pay or share access before funds arrived.
How to prepare
Write down the name of a lender you plan to use, the state license check and the phone number from the regulator's site. If you get a message that does not match, delete it. Tell family members, especially older relatives, about these patterns.
Teach the people around you
Scammers often target older relatives, new arrivals and young adults. Share the red flags with family. Agree on a rule: no one sends money to a lender before funds arrive, and nobody shares a code with someone who called first.
Quick reference
Never pay first. Never share codes. Verify the license. Call back on the number you find yourself. Report scams at ReportFraud.ftc.gov. Tell someone you trust.
If you receive a suspicious call
Hang up and call the company back using the number on its official site or your statement. Do not use a number the caller gave you.
Frequently asked questions
Can a real lender charge fees?
Yes, but they are disclosed and typically deducted from proceeds, not demanded in advance.
What do I do if I already paid?
Contact your bank or card issuer, then report to the FTC and your state.
Is it normal to pay a fee before a loan?
No. Legitimate lenders deduct fees from the loan proceeds. An upfront payment request is the hallmark of a scam.
Who do I tell if I was scammed in the Carolinas?
Report to ReportFraud.ftc.gov, your bank and your state's attorney general or consumer affairs office.
Can I trust a lender who texts me first?
Be skeptical. Verify through the state regulator before you reply.
What is a fake check scam?
You receive a check, are told to deposit it and send part back, and the check bounces after you sent real money.
Should I freeze my credit after a scam?
If you shared personal information, a free freeze is a strong step.
Where can I read more?
The FTC's advance-fee loan guide linked above explains the pattern.