Advance fee fraud 17 july 2022 ( in Urdu audio ) English and Urdu text.

Beware of advance fee scams

Another fake job scam to a remote area in Lahore

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A triangular loan scam is a deceptive scheme where scammers profit by lending money to individuals while involving unrelated customers in the repayment process. Below is a detailed breakdown of how the scam works.

• The scammer offers loans to borrowers with minimal or no credit checks, targeting those in financial distress or with poor credit.
• At the same time, the scammer markets products or services to customers, often overpriced or of low quality.

1. A customer buys a product or service from the scammer.
2. Instead of paying the scammer directly, the customer is told to pay the borrower who owes the scammer money. This creates the illusion of helping someone repay a loan while completing a purchase.
3. The borrower, on the other hand, is obligated to repay the “loan” with high interest or additional fees directly to the scammer.

• Customer’s payment: The scammer collects payment for the product or service but avoids fulfilling customer expectations properly (e.g., delivering a low-value product).
• Borrower’s repayments: Borrowers are required to repay the loan with interest, often far exceeding the amount they originally received.

• Borrowers: They are burdened with unmanageable debt due to high interest rates or hidden fees. If they default, the scammer may seize collateral or harass them for money.
• Customers: They unknowingly fund the scammer’s lending scheme, often overpaying for products or services or receiving nothing of value.

1. A scammer sells an “educational course” for $1,000. Instead of asking the customer to pay them directly, they instruct the customer:
   • “Pay the borrower who owes us $1,000 as part of their loan repayment.”*
2. The borrower previously received a $500 loan from the scammer but now owes $1,500 with interest.
3. The scammer collects both the customer’s $1,000 and any additional payments made by the borrower.

• Fake Charity Loans: The scammer claims, “Buy this product, and your payment will help someone repay their loan.”
• Multi-Level Schemes: Borrowers are pressured to recruit new borrowers or customers, creating a pyramid-like structure.
• Online Platforms: Fraudulent websites or apps connect customers to borrowers, taking fees or keeping a cut of transactions.

1. Unusual payment arrangements (e.g., “Pay someone else instead of us”).
2. Lack of transparency about loan terms or product/service quality.
3. Promises that sound too good to be true, like “no credit check loans” or “guaranteed approvals.”

• Consequences: These schemes are often illegal and violate consumer protection and lending laws.
• Prevention:
  1. Avoid businesses or platforms with vague or unusual payment methods.
  2. Research lenders and sellers for legitimacy before engaging.
  3. Verify loan terms and product/service authenticity.

This scam exploits both borrowers and customers by funneling money through a deceptive payment system. Borrowers are left with debt traps, while customers unknowingly fund the scammer’s fraudulent operations.