Windsor Police fraud prevention. Image courtesy Windsor Police Service.Windsor Police fraud prevention. Image courtesy Windsor Police Service.
Windsor

Windsor police issue warning about loan schemes

A series of reports about advance-fee loans has led to a heads-up from Windsor police.

The Financial Crimes Unit of the WPS is investigating three separate incidents in which victims were promised a loan if they paid a fee in advance, but they ended up without a nickel when it was all said and done.

According to Constable Talya Natyshak, each fraud victim began a communication online with what is believed to be a fraudulent company. The address attached to the company is in Windsor, which lends some credibility to the claim. However, the investigation has revealed that the address does not belong to the business.

The swindler promised a loan to the victim in exchange for an advance fee to guarantee it. Once the fee was received, the victim did not get the loan money and the fee was gone.

It's against the law in Ontario to for a company to ask for a fee in advance of issuing a loan to someone, said Natyshak. This type of crime is geared toward people who have difficulty obtaining cash or credit in other ways. Credit history is not a factor when it comes to luring victims.

The Financial Crimes Unit warns members of the public to do their research before talking to a company about a loan, especially when a lot of money is involved, and never send money electronically in advance of receiving a service or to someone you don't really know.

Windsor police recommend checking out loan companies with the Better Business Bureau and the Financial Securities Commission of Ontario (FSCO), of which all loan companies in Ontario must be licenced and registered with. Police have provided a link to a similar BBB report.

Anyone with information concerning these advance loan schemes is asked to call Windsor police at (519) 255-6700, ext. 4330. Anonymous tips may be submitted to Crime Stoppers at (519) 258-TIPS (8477).

Read More Local Stories