Beware of Scams
A follow-up to a Scam
Alert memo sent to all REAP borrowers in February
Last month a REAP member received a phone call from
“the American Small Business Group” saying that,
since this person had a REAP loan and made payments on
time the individual was eligible for more money. All the
person had to do was give their bank routing number and
The REAP member did not give the bank routing number and
account number, which was the right thing to do. This
instance and anything like it is a scam.
Limit phone information
YOU SHOULD NEVER UNDER ANY CIRCUMSTANCES give personal
information of this type to anyone over the phone
because it is normally some type of scam operation.
In this case, the supposed group made multiple calls and
became more insistent. The REAP member asked them to
mail information, but the group would only offer to fax.
This is another red flag – by mailing, the group in
question would also face mail fraud charges.
It is critical to never give your credit card number,
bank account information, or Social Security Number over
the telephone or Internet unless you are familiar with
the company and know why the information is needed.
Also, ignore any ad or hang up on any caller that
guarantees a loan in exchange for an advance fee. It’s
illegal for companies doing business by phone to promise
you a loan and ask you to pay for it before they
Check with the Better Business
Any business can be researched at the Better Business
Bureau website, http://www.BBB.org
Click on “Business” and enter the business name in
question, the phone number, or the web address. If any
negative reports have been filed on the business to the
Better Business Bureau, they will be displayed.
Even if no negative reports have been filed, you always
want to be absolutely certain about who you are dealing
with and completely certain the business is truly
legitimate. Further information about scams and fraud
can be found at the Federal Trade Commission website, www.federaltradecommission.com
The solicited REAP member is turning the information
into the Nebraska Attorney General and the Federal Trade
Commission. Please inform REAP staff immediately if you
receive a call like this. If you have caller ID and can
get the phone number, this may help in tracking down the
person(s) responsible. Please feel free to call any REAP
staff if you have questions or comments.