How to Avoid Financial Scams: A Guide for Borrowers

At Fig, your financial well-being and security are our top priorities. Whether you're applying for a loan or considering an investment, it's important to stay informed and cautious. Scammers are becoming increasingly sophisticated, so knowing what to look for can help you avoid falling victim to fraud.

What Is a Loan or Investment Scam?

In many cases, scammers will pose as "brokers" or financial advisors and present what seems like a great investment opportunity. They might encourage you to apply for a loan and invest the money, claiming you'll see high returns with no risk.

These offers are often urgent and persuasive. Scammers may:

• Claim the investment is a limited-time opportunity
• Say you are not responsible for the loan
• Promise guaranteed profits

If you’ve received this kind of offer, proceed with caution and read the tips below.

Warning Signs and What to Do

1. Do Your Research

Before acting on any financial advice or opportunity:

• Look up the company and person who contacted you
• Check for verified contact information, reviews, and official registration
• Avoid offers that promise guaranteed profits or low-risk high-reward investments

2. Understand Your Loan Terms

Only the person who applies for and signs a loan agreement with Fig is responsible for repaying it. Loan responsibility cannot be transferred to someone else.

3. Verify Credentials

Legitimate financial advisors or institutions should be registered with a regulatory body. If they refuse or avoid sharing proof of their credentials, that is a red flag.

4. Be Cautious with Pressure Tactics

Scammers often push you to act quickly. Take your time, review the offer, and never let anyone rush you into a financial decision.

5. Talk to Someone You Trust

Before moving forward with an investment or taking out a loan on someone else's advice, talk to a trusted family member or friend. A second opinion can help you avoid costly mistakes.

6. Ask Questions

If you're unsure, ask:

• Why do I need to borrow money to invest?
• Who will be responsible for the loan?
• What guarantees do I actually have?

If the answers seem vague or too good to be true, walk away.

Common Types of Financial Scams

Cryptocurrency Scams

Fraudsters may ask you to invest in fake or unregulated crypto opportunities. Warning signs include:

• Guaranteed profits
• Requests to send money or convert your loan funds into crypto
• Claims that the loan liability is not yours

Phishing Scams

These scams trick you into giving away sensitive personal or banking information. Watch for:

• Emails or texts from unfamiliar sources asking for SINs, passwords, or banking info
• Urgent language, poor grammar, or suspicious links

Advance Fee Scams

Scammers may ask for an upfront payment to release a loan or prize. Be cautious if:

• You're asked to pay before receiving anything
• You’re pressured to act quickly without documentation

Stay Safe and Informed

• If you're unsure about an offer involving your Fig loan, reach out to us directly.
• Never send money or personal information to an unverified third party.
• Remember: if something sounds too good to be true, it probably is.

You can always contact Fig Support at support@fig.ca with questions or concerns about your loan or a financial offer you've received.

This article is for informational purposes only and is not intended as legal or financial advice tailored to your individual circumstances.