The Securities and Exchange Commission (SEC) has cautioned the public against individuals and entities posing as representatives of Paragon Credit Alliance 604 Corporation to defraud borrowers.
In an advisory issued Wednesday, the SEC stated that scammers are using fake logos, fraudulent social media accounts, unauthorized websites, and unregistered online lending platforms (OLPs) to lure victims into fraudulent lending schemes.
These impostors are not affiliated with or authorized by Paragon Credit in any way, the regulator emphasized.
The schemes typically involve advance-fee arrangements, where victims are asked to pay processing fees before a loan is released. The SEC noted that such upfront payment demands are a common red flag in fraudulent lending activities.
Paragon Credit has clarified that it does not require any advance payments prior to loan disbursement.
The SEC urged the public to exercise caution and avoid engaging with suspicious loan offers from unofficial channels. Borrowers are advised to verify directly with Paragon Credit through its official website, email, and contact numbers before entering into any transaction.
Consumers should also check the registration and authority of financing and lending companies, including their OLPs, before dealing with them. Fraudulent activities can be reported to the SEC via its hotline, iMessage portal, official website, or mobile application.