Fake Loan Offers: Never Pay Upfront for Loan Approval

If someone asks you to make an upfront payment to approve, process or release a loan, stop and verify the request before transferring any money.

Fraudsters often impersonate recognised financial institutions and promise quick, pre-approved or guaranteed loans. They then ask individuals to pay a “processing,” “verification,” “activation” or “loan release” fee before receiving the loan. The payment may be described as refundable or necessary to complete the application—but once it is made, the fraudster usually asks for more money or disappears.

A genuine loan application is subject to eligibility checks, document verification and formal approval. Any applicable fees should be clearly disclosed in the financial institution’s official documents and processed through its authorised channels. You should never transfer money to an individual’s personal bank account to secure approval or release loan funds.

How the Upfront-Payment Scam Works

Fraudsters may contact individuals through social media advertisements, direct messages, phone calls, emails, messaging applications or fake websites. They may use the name, logo or branding of a legitimate financial institution to make the offer appear genuine.

The fraudster may:

• Claim that you qualify for an instant, guaranteed or pre-approved loan
• Ask for minimal information to make the process appear quick and easy
• Confirm that the loan has been approved before conducting proper checks
• Request an upfront processing, verification, activation, insurance or loan release fee
• Describe the payment as refundable or claim that it will be returned after disbursement
• Ask you to transfer the money to an individual’s bank account
• Request further payments after the first amount has been transferred

Once you make the initial payment, the fraudster may claim that another fee, tax, deposit or verification payment is required. The promised loan is never released, and the requests for money may continue.

The Most Important Warning Sign: Pay First, Receive the Loan Later

Treat any request for an upfront payment with caution, particularly when the payment is presented as a requirement for:

• Approving your loan
• Increasing the approved loan amount
• Verifying your identity or bank account
• Activating your loan
• Releasing or transferring the loan funds
• Paying a refundable security deposit
• Completing an allegedly approved application

Do not transfer money simply because you have received an approval letter, application number or payment instructions bearing a company logo. Fraudsters can create convincing documents and imitate legitimate brands.

If you are asked to pay before receiving the loan, contact the financial institution independently using the telephone number published on its official website. Do not use the contact details or links provided by the person making the offer.

Other Warning Signs

Guaranteed or Instant Approval

Genuine loan applications are subject to eligibility assessment, document verification and approval processes. Claims of guaranteed approval without proper checks should be treated as suspicious.

Payment to a Personal Bank Account

Never transfer money to an individual’s personal bank account to secure, approve or release a financial product. A bank account bearing an individual’s name is a significant warning sign, even if the person claims to be an employee or authorised agent.

Pressure to Pay Immediately

Fraudsters may claim that the offer will expire, the application will be cancelled or the loan cannot be released unless payment is made immediately. This pressure is intended to prevent you from taking time to verify the request.

Repeated Requests for Money

If you have already made one payment and are asked for another amount, do not pay again. Claims that an additional fee is needed to correct, complete or release the loan are commonly used to extract further payments.

Unofficial Websites or Social Media Accounts

A professional-looking website or social media page does not confirm that an offer is genuine. Check the website address carefully for spelling mistakes, additional characters or unfamiliar domain extensions.

Unfamiliar Contact Details

Do not rely only on the name or logo displayed in a message. Check the complete email address, mobile number, sender ID and social media handle. Be cautious when communication comes from a personal mobile number, an unfamiliar email domain or an unverified account.

Requests for Personal or Financial Information

Fraudsters may also ask for your Emirates ID, passport copy, photograph, banking information or card details. Personal documents should only be submitted through the financial institution’s verified and official channels.

Never share your OTP, PIN, CVV, password or online banking credentials with anyone.

Before You Pay, Pause and Verify

If you receive a loan offer:

• Do not make an upfront payment to obtain approval or release the loan
• Do not transfer money to an individual’s personal bank account
• Do not make further payments if you have already transferred an initial amount
• Apply only through the financial institution’s official website or authorised channels
• Contact the institution independently using the number published on its official website
• Do not use the contact details or links contained in a suspicious message
• Check the complete email address, mobile number, sender ID and social media account
• Review website addresses carefully for spelling errors or additional characters
• Do not submit personal documents through an unknown website or messaging application
• Never disclose your OTP, PIN, CVV, password or online banking credentials

What to Do If You Receive a Suspicious Deem Loan Offer

If you receive an unexpected loan offer claiming to be from Deem, do not make any payment or continue communicating with the sender.

Contact Deem Customer Care immediately on 600 525550 or visit www.deem.io to verify the offer. Always use the contact information published on Deem’s official website rather than the details provided in the message.

You can also report suspected fraudulent activity to customercare@deem.io and attach the relevant messages, sender details, mobile numbers, website links, payment instructions and other supporting documents.

If You Have Already Made a Payment

Act immediately:

• Contact your bank and report the transaction as suspected fraud
• Do not make any additional payments
• Stop communicating with the sender
• Save all messages, telephone numbers, email addresses, website links and payment records
• Report the incident to the relevant police or local authorities
• Change any passwords entered on the fraudulent website
• Monitor your bank and card accounts for suspicious activity

If you have also shared card or banking information, inform your bank immediately so that it can advise you on the necessary protective measures.

Important Reminder from Deem

Deem will not ask you to transfer an upfront verification, approval, activation or loan release fee to an individual’s personal bank account.

Deem will also never ask you to share your OTP, PIN, password or full card details through a phone call, SMS, email or WhatsApp message.

Before making any payment in connection with a loan offer, pause and verify the request through Deem’s official channels. A few minutes spent checking the source could prevent financial loss.

Frequently Asked Questions

1. Will Deem ask me to make an upfront payment to approve or release a loan?

Deem will not ask you to transfer an upfront verification, approval, activation or loan release fee to an individual’s personal bank account. Treat any such request as suspicious and contact Deem Customer Care on 600 525550.

2. The sender says the payment is refundable. Is it safe to pay?

Do not rely on a claim that the payment is refundable. Fraudsters often use this explanation to make an upfront fee appear legitimate. Verify the request directly with Deem before transferring any money.

3. What should I do if I have already paid the first fee and am asked to pay again?

Do not make another payment. Contact your bank immediately, report the transaction as suspected fraud and verify the communication with Deem Customer Care on 600 525550.

4. Can I trust an approval letter or message displaying the Deem logo?

Not necessarily. Fraudsters can copy company logos and create false approval letters, application forms and payment instructions. Verify the offer through www.deem.io or Deem Customer Care.

5. What information should I never share?

Never share your OTP, PIN, CVV, password or online banking credentials. Only submit personal documents, such as your Emirates ID or passport, through Deem’s verified and official channels.

6. How can I report someone impersonating Deem?

Send the suspicious communication and all available supporting information to customercare@deem.io. You can also contact Deem Customer Care on 600 525550.