This is a subscriber-only article.

For a limited time, join Entrepreneur+ and save 50% during our Cyber Monday sale. Use code SAVE50.

Join Now

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

Don't Get Scammed Borrowing money? Watch for online scams.

By Carol Tice

Opinions expressed by Entrepreneur contributors are their own.

You know it's wrong, but you can't stop yourself. You've been eyeing those internet business loan offers with piqued interest lately, positive that a couple of the professional-looking sites must be legit. Watch out: Looks can be deceiving. Websites that appear to be for established financial institutions--complete with flashy graphics and photos--may promise a quick application process and easy loan approvals only to disappear a few weeks later.

In April, the Better Business Bureau reported a spike in the number of complaints about advance-fee loan scams. Many of the hundreds of phony web-based lending organizations that the BBB has received complaints about this year have official-sounding names, such as Central Credit Financial or Corporate Bankers of America. Their websites promise easy business or consumer loans, but often require an upfront fee to process the loan application, which could be as high as a whopping $26,000, says Alison Preszler, media relations manager with the BBB. Customers report that the "banks" then vanish, taking their fees with them.

So how can you avoid bogus lenders online? Start here:

Editor's Pick

Related Topics

Business News

Can't Find a Place on Airbnb? The New 'Black Market' Has You Covered.

Tightening regulations on short-term rentals in NYC has led to a shadow market for Airbnb alternatives.

Growing a Business

More Than 90% of Startups Don't Make It. This CEO Reveals What It Takes to Not Only Survive — But Thrive.

Learn what it takes to grow a company while also scaling as a leader.

Business News

A Woman Is Suing a Popular Salad Chain After Allegedly Finding a 'Chopped' Human Finger in Her Bowl

The incident allegedly occurred at a Chop't location in Mount Kisco, New York, on April 7, 2023.

Starting a Business

How Business Community Is Making CEO Life Less Ghastly

People are starting to notice that if you want to get the best out of entrepreneurs, you have to support them. But how?

Marketing

5 Scrappy Ways to Create Quick Marketing Wins

Marketers are under pressure to create both short-term and long-term successes. Here's how you can create quick wins easily alongside your bigger strategy.

Business News

Mac Without Cheese? Kraft's Newest Product Is Going Vegan

Kraft is releasing a plant-based version of its iconic Mac & Cheese called "NotMac&Cheese."