This presentation by the Money 2.0 Conference (Money2Conf) reviews bridge loan scams, their nature, and how one can spot such fraudulent, fake schemes easily.

1. Bridge Loan Scams:
Reviewing Their Impact

2. Table Of Contents
➔ What Are Bridge Loans?
➔ Benefits & Disadvantages
➔ Introduction To Bridge Loan
Scams & Fraud
➔ Ways To Spot Scams & Fake
Schemes

3. What Are Bridge Loans?
To explain it in simple terms, bridge loans are short-term, temporary loans
that individuals and companies can avail quickly, especially when they are
waiting to secure traditional loans or funds.
This helps them to solve their most pressing financial obligations and
therefore, are most commonly used by entrepreneurs waiting for their
equity financing funds, homeowners who wish to get out of foreclosure
demands, or real estate investors who hope to seal a property deal before
their competitors. These come with high interest rates and require little
documentation.

4. Benefits & Disadvantages
CONS
● High interest rates
● High chances of getting
defrauded by scammers
● May become a huge
problem if you are unable to
secure permanent financing
modes later
● Expensive processing fee
PROS
● Quick access to financing
● Use it to pay downpayment
for a lucrative property
● No monthly payments for
the first few months

5. Why Are Bridge Loan
Scams On The Rise?
Because of the pandemic-induced restrictions,
many financial institutions are taking longer
than usual to verify loan requests and conduct
the necessary processes. As a result, more and
more people are turning towards non-QM loans,
such as these.
Naturally, due to their high demand, many
fraudsters have also set up shop in this arena.
They may pose as certified lenders, ask you to fill
spammy documents and then demand money to
process the loan. However, once they get the
fee, they stop all contact with the client in
question. Let’s look at the various types of
bridge loan scams in the following slides.

6. 1. Upfront fee
scams
This involves fraudsters asking
you for money upfront. It can be
difficult to determine their
authenticity as all bridge money
lenders require a certain
amount of fee to initiate the
documentation process.

7. 2. Bait & switch
scams
Here, the lender may unexpectedly
raise their rates at the last moment,
especially if they know that you have
no other option but to opt for
whatever they offer. In such
scenarios, the lender will try to use
your situation to get more money out
of you. Such scams and fake schemes
can also involve increasing
transaction charges citing
unnecessary expenses on part of the
lender to process your loan request.

8. 3. Identity theft
In such types of scams,
fraudsters may urge you to
enter your personal information
and bank details into fake
websites impersonating those
of authentic loan providers.
These fake websites allow them
to steal your information easily,
after which they may use your
identity to bend the law.

9. How To Spot Such Scams
& Stay Safe?
● Fraudsters often use high-pressure sales tactics to get you to sign up for their fake schemes as soon
as possible. So, be cautious.
● Check reviews of lending firms before sharing your information with them.
● Are they asking you to transfer money to an individual account? It might be a fake scheme.
● If they are claiming that they require hardly any documentation, it might not be safe to deal with
them.
● Review their website and social media handles. Have they been around long?
● Stay away from spam emails! If their spam messages are riddled with grammatical errors, hidden
links, and spelling mistakes, there is a huge chance of being scammed.

10. THANK YOU!
Presented & Reviewed By:
Vinayak Joshi,
Manager, Money 2.0 Conference
https://www.money2conf.com/