Can you spot a fake loan text scam?

You get a text message, supposedly following up on a $10,000 loan application. Only, you never applied for a loan. Is this pure luck or a scam? Before you use the callback number in the message to find out, or even reply “NO” to cancel the application, learn to spot a fake loan text scam.

Scammers use unexpected text messages to catch you off guard. Maybe the text says you’re preapproved for a large loan amount (not true). Or the company says it needs your Social Security or bank account number to finish the “application” (also not true!). Scammers hope that, if it seems like the process is already in motion, you’ll reply now and think later. They might say something like “This is the last step” or “Just reply YES to confirm you still want to claim the loan.” But none of that’s true, either. It’s just a phishing scam. If you respond, you might end up giving a scammer exactly what they want — your personal information, which could lead to identity theft.

If you get a text about a loan you didn’t apply for, here’s how to handle it:

• Don’t reply or click links. It could lead to a scam. Delete the text.
• Talk to someone you trust. Taking the time to talk about it with someone you trust could help you spot the scam.
• Delete unwanted texts using your phone’s “report junk” option or forward them to 7726 (SPAM). Then report it to the FTC at ReportFraud.ftc.gov.

If you think a scammer already has your personal information, go to IdentityTheft.gov for specific steps to take based on the information you may have lost.