Getting Money from People Ignorant Enough to Pay for Loans

tachosomozatachosomoza Regular
edited April 2011 in Man Cave
You see and hear advertisements in this vein all the time..."Got bad credit? Got no credit? No problem, give us a call or drop in today! Approval guaranteed!"

Here's a little hypothetical.

1.) Someone sets up a dummy company with a PO box or a phony address, toll free number, and other trappings of a legitimate firm. They give their company a name which reeks of legitimacy and establishment. Billy Jo's Loan Farm isn't going to work, even on morons. They pick something that the simple will associate with prestige and trust. They don't give information when setting up that would lead back to the individuals behind the game. Whenever possible, they pay in cash or money orders.

2.) They print out some slick flyers and hang them up in areas frequented by people that may be looking for loans. They've got some cash, so they get some airtime on a local radio station. They also run an ad in the paper, but include attractive wording to cater to their target market. No credit check. Got debt? No problem! You deserve a loan! Also, they design and put up a slick looking website to lend more legitimacy to the "firm".

3.) Calls start to flood in. The scammers collect the personal information from the callers, and tell them they've been pre-approved for a loan. They claim, however, that there is a small processing fee needed, say...$15. The scammers ask for the caller's bank account number, which they are promptly given. The scammers debit the prospective borrower's account for the $15.

4.) After about a week or so, the scammers have collected enough money from the hapless residents of the state in which they've set up shop. They file a certificate of dissolution with the secretary of state, cash out the company account, and get out of dodge.


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