This Scam Is Making Payday Loans Even Worse

Scammers are stealing customers' personal information and targeting them.
Payday loan companies have been available for many years, providing mostly low-income people or families who are in financial need fast money—but with extremely high interest rates. The practice is so questionable that 16 states banned the predatory practice, according to Consumer Federation of America. However, people who use these bad-faith services have yet another thing to worry about besides falling into more debt: They are being targeted by scammers.
According to a recent study from the Better Business Bureau, scammers and illegitimate companies are bringing in millions of dollars a year from consumers who use payday loan services, despite efforts from authorities to stop it. These fraudsters steal the personal information from payday loan companies’ customers and use it against them to scam them out of money—totaling $4.1 million lost so far, and counting.
This Scam Is Making Payday Loans Even Worse