If you sent money to a lender or broker and now they have gone quiet, act today. Speed matters more than anything else on this page.

Being scammed is embarrassing, and a lot of people wait a day or two hoping the lender will call back. Do not wait. The steps below are what the FBI and FTC tell victims to do, in the order I would do them.

What Should I Do First If I Wired Money to a Scammer?

Call your bank right now and ask them to recall the wire.

The FBI's Internet Crime Complaint Center says to contact your bank as quickly as possible and ask for a recall or reversal of the transfer, plus a Hold Harmless Letter or Letter of Indemnity. Doing it fast may reduce or even eliminate the loss. Then report it to the FBI.

  1. Call your bank's fraud line. Ask for a wire recall or reversal, and ask for a Hold Harmless Letter or Letter of Indemnity (FBI IC3).
  2. File a complaint at ic3.gov. Include the banking details of the wire.
  3. Report it to the FTC at ReportFraud.ftc.gov.
  4. Tell your state attorney general and your state banking regulator (FTC).
  5. Paid by card or a payment app? Call the card company or app and report the charge as fraud.
  6. Save everything: emails, texts, the wire confirmation, names, phone numbers, website addresses, and any "approval" or term sheet they sent.

Takeaway: the bank call comes first, before the police report and before you confront the scammer.

How Fast Do I Need to Act?

Within hours if you can. Every hour gives the money more time to move.

The FBI's advice is to report a fraudulent wire to your bank and to IC3 immediately. A quick recall request may reduce or eliminate the loss, and the longer you wait, the harder it gets. Make the bank call even if it has been a few days. Late is better than never.

Who Should I Report a Loan Scam To?

Your bank, the FBI, the FTC, your state attorney general, and your state banking regulator.

Each report does a different job. The bank can try to stop the money. The FBI and FTC collect reports that help them find and shut down scammers. Your state attorney general and banking regulator handle lenders and brokers doing business in your state, and can tell you whether one was ever registered.

If the scammer used a real company's name, tell that company too, so it can warn others. If anyone used the Damen Capital name, call us at 302-526-0200.

Can Someone Help Me Get My Money Back for a Fee?

Be very careful. Anyone who asks for a fee to recover your money is likely running a second scam.

The FTC warns that scammers buy and trade lists of people who have already lost money, then call offering to get it back for a fee. They call it a retainer, a processing fee, or a tax. Government agencies and legitimate organizations do not charge you to help get a refund (FTC).

Takeaway: after a scam, the next person asking you for money up front is the second scam.

How Do I Avoid Getting Scammed Again?

Never pay a lender or broker anything before closing.

That is my rule, and it is stricter than some. The FTC notes that some real lenders do charge an application or appraisal fee before they consider a loan. My view: on a private land loan there is no reason for it. A real lender gets paid at closing, through title, on the settlement statement. If a lender needs your money before closing, find another lender.

Before you work with anyone new, run through how to tell if a land lender is real, including the quick legit check. If a broker is involved, read how to avoid loan broker scams.

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Loan Scam FAQ

What should I do if I wired money to a loan scammer?

Call your bank's fraud line right away and ask for a wire recall or reversal and a Hold Harmless Letter or Letter of Indemnity. Then file a complaint at ic3.gov and report it to the FTC at ReportFraud.ftc.gov.

Can I get my money back after a loan scam?

Sometimes, if you act fast. A quick recall request through your bank may reduce or eliminate the loss. The longer you wait, the more likely the money is gone.

Should I pay someone to recover money I lost to a scam?

No. Anyone asking for a fee to recover lost money is likely running a second scam. Government agencies and legitimate organizations do not charge to help you get a refund.

Where do I report a fake lender or broker?

Your bank, the FBI at ic3.gov, the FTC at ReportFraud.ftc.gov, your state attorney general, and your state banking regulator.

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