Identity Theft Is At A Record High

We all want to feel secure in our financial decisions, but unfortunately, fraudsters are working overtime to trick people out of their hard-earned money. Scams have become incredibly sophisticated, and they often target our parents, grandparents, students and neighbors by preying on politeness or creating a false sense of panic.

According to the latest data from SentiLink's Q3 2026 Fraud Report, identity theft has escalated to 6.12% of all financial applications—meaning roughly 1 in 16 applications for credit cards, auto loans, and telecom accounts are now fraudulent.

Furthermore, the Federal Trade Commission (FTC) reports that overall consumer losses to impostor scams surpassed $3.5 billion, with the average number of identified scams per bank skyrocketing by 150% over the last year. 

Common Loan Scams Happening Right Now

Scammers use phone calls, text messages, and emails to try and catch you off guard. In fact, text messages are now the number one way scammers contact victims, accounting for over 411,000 reports and millions in losses in 2025. 

Here is what is trending:

• Approval Text or Call: You get a voicemail or text congratulating you on being approved for a large loan that you never applied for. The goal is to make you panic or get curious enough to reply, at which point they will try to steal your personal information.
  
  Take Action: Never reply as this confirms your number is active. Simply block the number, delete the message, and report it as junk.

• The "Guaranteed" Loan: A "lender" promises they can get you a loan regardless of your credit score. They require you to pay an upfront "processing fee" or "insurance fee" before you get the money. Once you pay, the scammer disappears.
  
  Take Action: Legitimate lenders deduct fees from the loan amount itself. Always verify a lender's legitimacy by checking with your state's Attorney General or the Better Business Bureau before proceeding.

The Universal Red Flags

If you memorize anything from this guide, make it these three warning signs. If you spot them, you are likely dealing with a scam:

• Urgency and Pressure: If someone on the phone is rushing you, telling you an offer has a deadline or threatening you if you hang up, it is a scam.
• Weird Payment Methods: A legitimate financial institution will never ask you to pay fees using a wire transfer, cryptocurrency, payment apps, or store gift cards.
• Guaranteed Approvals: Real lenders always check your financial background before approving a loan. "No credit check" promises are a major warning sign.

Stop, Think, Verify

If you ever feel unsure about a text, email, or phone call, use the Stop, Think, Verify method:

Stop and Hang Up: If you get an unexpected call asking for money or personal information, hang up immediately. Do not trust your Caller ID; scammers can easily fake it to look like a local bank or a government agency.

Don't Click the Link: If you get a text about a loan you didn't apply for, do not click any links. Navigating to fraudulent sites can download malware onto your phone.

Verify the Source: If you are worried there might be a real issue with your bank account or a family member, look up their official phone number on the back of your debit card or their official website and call them directly to check.

Talk to Someone You Trust: Scammers thrive on isolation. Before you send any money or give out your Social Security Number, tell a friend, neighbor, or family member about the situation. Just talking about it out loud can often help you realize it’s a trick.

Freeze Your Credit: If you suspect you've interacted with a scammer or clicked a bad link, immediately contact the three major credit bureaus (Equifax, Experian, and TransUnion) to freeze your credit. This stops scammers from applying for loans in your name.

If you or someone you know has been targeted by a scam, you can report it directly to the FTC at ReportFraud.ftc.gov to help authorities track down the fraudsters. Stay safe, stay vigilant, and share this information with the people you care about!