FTC Complaints Increase By 10,000 In 2013
With sources of capital still in short supply in
the wake of the financial crisis, small businesses are exploring
non-traditional means to secure funds. However, that has left some open to
complex scam artists. One such scam that has been drawing attention in recent
weeks is the “advance fee-loan.” The basis of the scam is for a self-described
loan broker to demand an upfront payment for a loan that never materializes. In
2013, there were more than 53,000 complaints about such loans filed with the
Federal Trade Commission, up from 43,000 the previous year.
In addition to a
significant piece in the Wall
the issue has also drawn the attention of local news outlets, such as WIBW-TV .
This news article is intended to keep small business owners apprised of current events that may affect them. It does not necessarily reflect NFIB’s policy position on such issues.