Payment in advance scams
Payment in advance scams are when criminals convince you to pay an upfront fee for a service, prize or product that they do not provide.
Scammers use a variety of reasons for the payment, from securing a rental property by paying a fake deposit, to sending money to cover job offer background checks.
Discover examples of these to know what to look out for.
On this page:
Advance fees for a loan
You may see an advert for a fast loan that meets your needs and will be approved regardless of credit history.
The scammers ask for an administration fee to secure this loan or cover the insurance needed. There is then no further contact from the fake loan company and the payment is never made to you.
Always use a trusted provider for loans and get in touch with us if you are in financial difficulty.
Prize or lottery
A scammer contacts you to say you have won a prize or lottery. It could be one you entered or one you have never heard of.
They ask you to pay tax on the amount or a processing fee to release the winnings. You pay the fee but the prize or lottery winnings are never paid to you.
Remember, you cannot win a lottery or competition that you have not entered.
Property deposit
Scammers advertise rental properties that they do not own, often using fake social media profiles. They advertise at a lower price and use housing areas that are high in demand.
You may be told that you cannot view the property but to secure the rental, you need to pay a deposit. The scammer then stops responding to you because the property was never available.
It is important to always visit a property for a viewing and check that the landlord or estate agent is genuine before you pay any money.
Recruitment
Scammers advertise or offer job opportunities with a high salary where limited experience is needed.
To secure the fake job, they ask you to pay for your training materials, background checks or work equipment. They promise to reimburse you but the payment never comes.
Make sure you research all job offers and only use trusted recruitment sites.
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Question whether it makes sense to pay upfront
Think carefully, does it make sense that you need to pay in advance? Is this usual?
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Do not feel pressurised by the urgency
Do not let the person or company pressurise you into paying quickly. Take time to consider if this could be a scam.
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Check that the advert or website you have viewed is from a genuine company
Check the website address by looking out for different characters. If unsure, find the company’s genuine web address and check reviews.
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Be aware of adverts and pop-ups
If an advert or pop-up opens up an external website, check it carefully to make sure it is from a genuine company.
Learn more
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Take Five
Take Five offers straightforward and impartial advice to help everyone protect themselves from fraud.
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Common fraud threats
Find out more about common fraud threats and how to avoid them.
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