Scammers are operating fraudulent websites and posting ads on social media offering personal loans, Scamwatch reports. Once applicants are approved, they are asked to provide personal identification documents and pay an upfront fee for 'payment protection' or 'loan establishment' insurance before funds are released, with claims the fee will be refunded after three months.

The scammers impersonate licensed financial service providers and loan brokers, sometimes fraudulently quoting ABN registration and credit licence details from ASIC. Scamwatch warns that anyone searching for a loan — particularly those experiencing financial hardship — may be vulnerable, and advises checking that loan providers are licensed through ASIC's professional registers before proceeding.