Consumer Protection warns of faux personal loan websites

Scammers are wooing financially vulnerable Australians with online personal loan offers and then charging them “bogus” upfront fees, according to the government body Consumer Protection in WA.
WA Acting Commissioner for Consumer Protection, Gary Newcombe expressed concern in a press statement for the financially vulnerable who are more likely to fall prey to bogus personal loan promises.
“The heartless nature of this type of scam is particularly disturbing, as it targets susceptible consumers who may have had difficulties getting loans from traditional sources and then preys on their excitement when they believe their loan application has been successful,” Newcombe said.
In this year alone, 9 people in WA have fallen prey to scammers and lost almost $20,000 online to these particular bogus loans.
Other types of common scamming includes identity theft, such as a recent case which saw customers ripped off by thousands of dollars from a fake website. The thieves stole the identity of the Sydney business Finance Money Australia Pty Ltd, by masquerading as them to catch unsuspecting Australians. The fake website has now been closed down.
Consumer Protection urged that people who search for personal loans online be wary of all loan websites, even if they look genuine, as it could be a case of mistaken identity.
“As the scammers are using the names of genuine loan providers, registration checks with ASIC will turn up a positive result, so we advise consumers to independently verify the authenticity of the company by using their contact details on their registration or via the white or yellow pages’ phone directories,” Newcombe advised.
Take note of these tips to prevent being scammed online:
• Keep informed by following the government funded body Scamwatch on social media, and check the website before applying for a personal loan.
• Look at the website url if you land on a page and find it looks a bit suspicious, because it could be a copycat website.
• Before you start typing in your details online, check to see if the website has a customer service hotline. If someone doesn’t pick up, alarm bells should be ringing. Sometimes scammers even go so far as to redirect calls from an Australian prefix code to another country, so don’t just rely on a phone number for authenticity.
• Be wary of requests to transfer funds upfront, as you may lose them forever.
• Get advice from Consumer Protection (1300 30 40 54) or ASIC (1300 300 630) before going ahead on any transaction you’re unsure of.
If you need to apply for a personal loan, don’t risk getting scammed. Use the Mozo comparison tool, which only compares personal loans from legitimate providers in Australia.
Personal loan comparisons on Mozo - last updated 14 May 2022
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- Unsecured Personal Loan - 2022
Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.95% p.a.to 19.95% p.a.5.95% p.a.to 19.95% p.a.based on $30,000
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- 5.95% p.a.to 19.95% p.a.
- comparison rate
- 5.95% p.a.to 19.95% p.a.based on $30,000
over 5 years
- interest rate
- 5.95% p.a.to 19.95% p.a.
- comparison rate
- 5.95% p.a.to 19.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
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- $0.00
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- $0.00
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- $5,000.00
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- $50,000.00
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Excellent Credit
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Monthly repayment5.45% p.a.to 8.48% p.a.6.07% p.a.to 8.84% p.a.based on $30,000
over 5 yearsOurMoneyMarket offer competitive low rates for borrowers with excellent credit on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award^.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.45% would cost $34,590.57 including fees.
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- 5.45% p.a.to 8.48% p.a.
- comparison rate
- 6.07% p.a.to 8.84% p.a.based on $30,000
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- 5.45% p.a.to 8.48% p.a.
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- 6.07% p.a.to 8.84% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
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- $0.00
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- $2,001.00
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- $75,000.00
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- 7 Years
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Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
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Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.35% p.a.to 19.09% p.a.6.14% p.a.to 19.99% p.a.based on $30,000
over 5 yearsFast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.
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- 5.35% p.a.to 19.09% p.a.
- comparison rate
- 6.14% p.a.to 19.99% p.a.based on $30,000
over 5 years
- interest rate
- 5.35% p.a.to 19.09% p.a.
- comparison rate
- 6.14% p.a.to 19.99% p.a.based on $30,000
over 5 years
- Upfront fee
- $575
- Monthly fee
- $0.00
- Exit fee
- $0.00
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- $15.00
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- Minimum loan amount
- $2,000.00
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- $70,000.00
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Read our Mozo Review to learn more about the Harmoney Unsecured Personal Loan
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Home Improvement Loan
Fixed, Unsecured
interest rate
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Monthly repayment5.75% p.a.5.96% p.a.based on $30,000
over 5 yearsHandypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.
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- 5.75% p.a.
- comparison rate
- 5.96% p.a.based on $30,000
over 5 years
- interest rate
- 5.75% p.a.
- comparison rate
- 5.96% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
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Personal Loan
Unsecured, Fixed, Excellent Credit
interest rate
comparison rate
Monthly repayment6.39% p.a.to 7.89% p.a.6.39% p.a.to 8.49% p.a.based on $30,000
over 5 yearsWith low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).
Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.
CompareCompare- interest rate
- 6.39% p.a.to 7.89% p.a.
- comparison rate
- 6.39% p.a.to 8.49% p.a.based on $30,000
over 5 years
- interest rate
- 6.39% p.a.to 7.89% p.a.
- comparison rate
- 6.39% p.a.to 8.49% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
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- $0.00
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- Displayed interest rate is for customers with an excellent credit history. Application fees may be higher depending on loan amount.
Read our Mozo Review to learn more about the Plenti Personal Loan
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Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment5.95% p.a.to 17.45% p.a.6.79% p.a.to 17.86% p.a.based on $30,000
over 5 yearsWisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.
Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.
CompareCompare- interest rate
- 5.95% p.a.to 17.45% p.a.
- comparison rate
- 6.79% p.a.to 17.86% p.a.based on $30,000
over 5 years
- interest rate
- 5.95% p.a.to 17.45% p.a.
- comparison rate
- 6.79% p.a.to 17.86% p.a.based on $30,000
over 5 years
- Upfront fee
- $595
- Monthly fee
- $0.00
- Exit fee
- $0.00
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- $25.00
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- Weekly, Fortnightly, Monthly
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- $64,000.00
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* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
^See information about the Mozo Experts Choice Personal Loan Awards
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