How the scam works
What happens
A lender promises approval despite poor credit but asks for an upfront administration, insurance, clearance, or release fee. After payment, more fees appear and the loan is never provided.
Example scenario
A lender approves R50 000 instantly but requires a R750 “insurance activation” payment.Example wording is illustrative and may differ from real scam messages.
Warning signs
Red flags to look for
01
Guaranteed approval
02
Fee before funds are released
03
Communication from free email accounts
04
No verifiable credit-provider details
Safer response
What to do next
01
Verify the lender with the relevant regulator
02
Do not pay an advance fee to receive a loan
03
Read the agreement carefully
04
Avoid sharing internet-banking credentials