Advanced Fee Scams Explained

Advanced fee scams promise you a big reward, like a loan, prize, or job, but you must pay a small fee upfront to get it. After you pay, the reward never comes, and the scammer disappears. These scams trick you by making the reward sound guaranteed and the fee seem reasonable.

For example, you might get a call saying you’ve been approved for a $10,000 loan, but you need to pay a $200 processing fee first. You send the money, but the loan never arrives. Seniors are targeted because they may need loans or trust offers that sound official.

Tips to Identify Advanced Fee Scams

Be Skeptical of Promises: If someone guarantees a loan, prize, or job but requires a fee, it’s likely a scam. Real offers don’t work this way.

Check the Source: Research the company or person offering the reward. Use their official website or contact info to verify.

Avoid Unusual Payments: Scammers ask for fees via gift cards, wire transfers, or cryptocurrency. Legitimate companies use secure methods.

Look for Pressure: Scammers push you to pay quickly before you can think. Take time to discuss with a trusted person.

Watch for Fake Documents: Scammers may send official-looking letters or emails. Check for typos or strange addresses.

Ask for Help: Share the offer with a family member or friend to see if it sounds legitimate before paying.