Are intermediaries really helping you to secure loans?
Or are they eyeing your money?

You may notice that the same kind of scams recur from time to time. One such example are fraudulent financial intermediary scams which tend to resurface along with the rise of borrowing. Recently, there have been news reports about a number of fraud cases involving loan intermediaries, with victims losing up to millions of dollars.

• Scammers cold call their victims and falsely claim that they can help to apply for low-interest loans, highlighting the fact that no fees will be charged unless the loan is successful, or guaranteeing that they can help you secure the loan.
• Scammers impersonate employees of financial, law or accounting firms and offer their victims professional services, such as improving credit history, loan restructuring, or providing legal or accounting advice, etc. and charge a fee for their services.
• Scammers may obtain your personal data through illegal means and claim to be a representative from a bank, finance company or government department to call and inform you of problems with your existing loan or mortgage, and get you to restructure your loan, make changes to or refinance a mortgage.

Scammers have many tricks up their sleeves. Their ultimate goal is to cheat people out of their money. This can come in the form of handling fees, consultation charges or credit evaluation fees. They can also fabricate different reasons to ask for huge security deposits, or lure victims into borrowing from financial institutions for various purposes such as an escrow or to buy investment products, with the intention to swindle them out of their money after victims receive the loan.

If you do not want to be scammed, stay skeptical – don’t just trust anyone easily, especially when money is involved. When you receive a call from someone claiming to be a staff member of a bank, a finance company or a government department, do take it with a grain of salt. Call the relevant organization back to verify the identity of the caller. Following the requirements of the Hong Kong Monetary Authority, banks do not use intermediary companies to introduce their personal financial products or services. If an intermediary claims it can help you secure a loan from a bank, it is highly likely to be a scam.

Furthermore, if you do need to borrow from a finance company through an intermediary, please check the List of Third Parties Appointed by Licensed Money Lenders provided by the Companies Registry to verify its validity. Note that if an intermediary is not appointed by the relevant finance company, it can never succeed in applying for a loan for you with that particular finance company.

If you have a genuine need to borrow, you should consider applying from a bank or a reputable finance company so that you will not fall victim to fraudulent intermediaries. Scammers may appear to be helping you with your loan, while in fact they are trying to deceive you to take your money. Remember, don't pay any intermediaries! If you suspect you have been scammed, call the police on the “Anti-Scam Helpline 18222” to seek help.

Learn more about how to avoid scams.