Phone and text scams cost Americans billions of dollars each year through fraud. In 2024, consumers reported losing more than $12.5 billion to fraud, with phone calls the second most common contact method and texts close behind.
Losses tied specifically to text-message scams reached about $470 million that year, more than five times the amount reported in 2020. For scams that begin with a phone call, the median loss is often around $1,400 or more per victim.
NOTE: Tropical Financial Credit Union will never ask you to share sensitive personal information, including your account or debit card number, Social Security number, Employer Identification Number (EIN), PIN, online banking password, or multi-factor authentication (MFA) or verification codes. If you receive a call, text, or email requesting this information, hang up immediately and contact the credit union directly at 888-261-8328, or call your credit card issuer using the phone number on the back of your card.
Where do the calls and texts come from?
Many loan-related scam calls and texts originate from organized crime operations, often based overseas, where enforcement is weaker, and caller-ID spoofing tools are easy to obtain. These operations use cheap internet-based phone services to blast out millions of robocalls and texts, relying on the fact that only a small percentage of people need to respond to their schemes to be highly profitable. Some rings also operate inside the U.S., hiding behind shell companies and fake “lending” websites to appear legitimate while routing money and data offshore.
How the “easy loan” scam works
While details vary, most “approved” or “easy-to-qualify” loan scams follow a similar pattern:
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You receive an unsolicited call or text. The message claims you are pre-approved for a personal, business, or debt-consolidation loan, sometimes mentioning a specific dollar amount to sound convincing.
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The offer sounds unusually generous. Scammers promise instant approval, very low interest rates, no credit check, or special programs “for people with bad credit” that legitimate lenders rarely advertise via random calls or texts.
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They rush you to act. The caller or texter may say the offer expires today, that you must confirm your information immediately, or that delay could cause you to lose access to funds you “already qualify for.”
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They ask for sensitive information. Supposedly, to verify identity or process a loan, they request Social Security numbers, full business EINs, bank or credit union account numbers, online banking logins, or copies of your ID, pretty much everything needed for identity theft or account takeover.
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They demand upfront payment. Some insist on application fees, “insurance,” or “processing” charges via gift cards, wire transfer, peer-to-peer apps such as Zelle, or cryptocurrency. They choose these methods because fund transfers are difficult or impossible to reverse.
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The loan never materializes. Once they have your money or data, the scammers disappear, leaving consumers and businesses with drained accounts, new fraudulent loans taken out in their names, or compromised credit profiles.
For small businesses, scammers may pose as alternative lenders, promising fast working-capital loans or merchant cash advances, then vanish with application fees or use stolen information to attempt larger frauds.
How consumers and businesses can protect themselves
You can dramatically reduce your risk by treating unsolicited loan offers as a red flag. If a text or recorded call says, “You’re approved for a $25,000 small-business loan. Click here (or call back) to claim within two hours,” your safest move is to delete the message and, if curious, call your credit union or other financial institution using the number on your statement to ask about legitimate options instead.
Here's what you should do instead:
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Hang up on callers who pressure you. If someone calls out of the blue with a “too good to be true” financing offer and pushes you to act immediately, end the call. Legitimate lenders will not force on-the-spot decisions.
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Ignore and delete unsolicited texts. Do not click any links or call numbers listed in a text offering fast, guaranteed, or pre-approved financing.
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Never pay upfront fees. Be highly skeptical of a lender’s demand for payment before releasing funds, especially when the so-called loan officer asks for gift cards, a wire transfer, crypto, or a funds transfer via a peer-to-peer app.
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Independently verify the lender. Look up the institution’s official website, phone number, and physical address on your own, then contact its office to confirm any offer. Check that the lender is registered or licensed in Florida by visiting the Office of Financial Regulation website. Consumers can find information on the office’s Division of Consumer Finance webpage.
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Protect personal and business data. Do not share Social Security numbers, EINs, or banking credentials over the phone or by text with anyone who contacted you first. If you think you have given information to a scammer, contact your financial institution immediately and consider placing fraud alerts or credit freezes with the major credit bureaus.
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Report scams to authorities. Information shared at ReportFraud.ftc.gov helps law enforcement track patterns and issue warnings to others. Businesses can also report suspicious texts and calls targeting employees, specifically finance staff.
Safer places to look for a loan
The safest way to borrow is to initiate contact with a trusted, regulated financial institution like Tropical Financial rather than responding to an unsolicited call or text.
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Federally insured credit unions like Tropical Financial are regulated, examined, and required to follow strict consumer protection and fair-lending rules. They do not ask you to pay fees with gift cards or crypto, and they disclose rates and terms in writing. The credit union has no application charges.
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As member-owned, not-for-profit cooperatives, credit unions focus on serving consumers and local businesses rather than maximizing shareholder profit, which often means more favorable loan rates, transparent fees, and personalized guidance on whether a loan is truly in your best interest. You can find the latest Tropical Financial business loan information here and consumer loan rates here.
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If you choose a fintech or online lender, verify licensing, read independent reviews, and access them through their official website or app.
Remember that legitimate lenders like Tropical Financial do not chase you by phone or text with promises of guaranteed approval. When you are ready to borrow, start with the credit union or other regulated lender, and block unsolicited calls and texts offering “easy money.”
