Advance Fee Scam UK: Verify Before Paying to Receive Money
An unexpected demand for money to release a loan, prize or inheritance is a major scam warning, but do not use the false rule that every genuine loan is fee-free.
What advance-fee fraud is
The victim is promised money, credit, goods, an investment return or another benefit after paying an upfront amount. The promised benefit does not arrive, and further “tax”, “insurance”, “processing” or “release” charges may follow.
Government anti-fraud guidance lists inheritance fraud as one form of advance-fee fraud. The Gambling Commission says a notification that you won a lottery you did not enter is a scam and that genuine lotteries do not require payment to provide a prize.
Loan-fee fraud
The FCA says it receives hundreds of loan-fee fraud reports each year. Fraudsters often ask for £25 to £450, and the current FCA page reports an average victim loss of £255. They frequently target people who have applied for loans online.
Some FCA-authorised firms do charge a disclosed upfront fee, so “no genuine loan ever charges a fee first” is not a safe test on its own. Before taking payment, an authorised firm must send a written notice stating the firm’s legal name, whether it is acting as a credit broker, the fee or calculation method, and when and how payment will be taken — and the customer must acknowledge that notice. Verify the firm through the FCA Firm Checker and confirm you have received the required fee notice before paying anything.
Warning signs
- An unsolicited prize, inheritance or loan you did not enter, expect or apply for.
- A fee demanded before money can be released, especially by bank transfer, gift card or crypto.
- Further fees appearing after the first payment.
- A loan firm absent from the FCA Firm Checker or using details that do not match it.
- Pressure to act before obtaining independent advice or written terms. Wedding suppliers are a common setting for this, because deposits are large and expected — see our wedding photographer scam guide.
Verify independently
For a loan or credit broker, use the FCA Firm Checker and contact the firm only through the details shown there. Confirm whether it is acting as lender or broker and obtain the required fee notice before paying.
For a claimed lottery win, verify the operator independently and remember that a lottery you did not enter cannot have produced a genuine win. For an inheritance, contact the named solicitor or institution through independently found professional details and obtain written information; do not rely on the sender’s number or account.
If you already paid
Stop sending money. A second release fee does not make the first promise more credible. Contact the bank or payment provider immediately and preserve all messages and payment details.
Report fraud at reportfraud.police.uk or on 0300 123 2040 in England, Wales or Northern Ireland; in Scotland, call Police Scotland on 101. If a financial-services or loan firm was involved, report it to the FCA on 0800 111 6768 or through its online form.
Frequently asked questions
Can a genuine loan broker charge an upfront fee?
Yes, sometimes. FCA rules require clear written notice and customer acknowledgement, and the firm’s identity should match the Firm Checker.
Can I win a lottery I never entered?
No. The Gambling Commission treats that notification as a scam warning and says genuine lotteries do not charge to release a prize.
What if another fee is demanded after I paid?
Stop paying and contact the bank. Repeated fees are a classic advance-fee pattern.