Beware of Online Loan Scams Asking for Your Online Banking Login
Some online loan companies—especially those marketed on social media—ask applicants to provide their online banking username and password so they can “verify income” or “deposit loan funds.” This practice is high-risk and frequently used by scammers.
How the Scam Works
- A consumer applies for a loan with an unfamiliar lender.
- The lender instructs the applicant to enter their online banking login information into a link or portal. They may also call you to ask for your online banking information and any verification codes sent to you.
- The scammer gains full access to the account.
- Fraudsters may then:
- Deposit a small “test” check to see if the account is active before depositing a larger fraudulent check. Legitimate lenders typically do not deposit small test checks — they simply deposit your approved loan proceeds in one transaction.
- Deposit a fraudulent check and ask the applicant to send money back.
- Attempt account takeover.
- Move money between internal accounts to make fraudulent deposits appear legitimate.
Red Flags to Watch For
- Guaranteed approval regardless of credit.
- Requests for your online banking username, password, or one-time passcodes.
- Instructions to “link your account” through unfamiliar portals.
- Small deposits prior to the “loan funding.”
- High-pressure messaging.
- Communication via text messages, DMs, or unsecured email.
Protecting Your MICR / Account Number
Please don’t share your full account number until you’ve confirmed you’re working directly with the lender and are using a secure channel. Legitimate lenders may need this information later in the application process, but it should only be provided after your identity and the company’s identity have been verified.
How to Protect Yourself
- Never share your online banking login with any lender.
- Be wary of companies requiring account linking through unknown platforms.
- Avoid lenders who ask for account numbers before verifying their identity.
- Research the lender through reputable sources.
- Contact us if something feels off — we’re happy to help review it with you.
Safer Loan Options Are Available
As your credit union, we offer secure, legitimate loan solutions with transparent terms and no risk to your account. Whether you need emergency funds, a personal loan, or guidance, our team is here to help.
Explore your loan options here: Personal Loans | Class Act Federal Credit Union