New SMS Loan Scam Surge: Fraudsters Trick Victims into Paying Fake Gift Taxes

A new scam targeting financially desperate people in South Korea is rapidly spreading on social media. Fraudsters pose as lenders and request victims pay "gift taxes" before approving loans. After victims transfer the fake tax, scammers disappear without providing promised funds. Experts warn this is a fabrication with no legal basis.

How the Scam Works

Fraudsters on social media, particularly SNS platforms popular in Asia, create accounts with profiles stating "Help financially struggling people unconditionally." These accounts actually target desperate individuals seeking loans.

The Step-by-Step Process:

The Bait: Scammers post attractive loan offers on social media with simple profiles
The False Requirement: When victims contact them, scammers claim that before approving the loan, victims must pay "gift taxes" to avoid detection by tax authorities
The Theft: Victims transfer money believing it's a legitimate tax requirement
The Disappearance: Once payment is received, the scammer deletes the account and vanishes

Why This Is a Scam

The claim that borrowers must pay "gift taxes" before receiving a loan has no legal basis whatsoever. This is an entirely fabricated concept created by fraudsters. In reality, gift taxes are only applicable in specific circumstances involving actual gifts of money or property, not loans, and they are never prepaid as loan conditions.

The Psychological Manipulation

What makes this scam particularly malicious is its exploitation of financial desperation. People facing urgent money problems often have diminished decision-making capacity, making them vulnerable to requests that should raise immediate red flags.

Warning Signs and Prevention

Red Flags:

Anonymous social media accounts offering loans
Promises of "unconditional" or "no-approval" loans
Requests for upfront payments (fees, taxes, or insurance) before loan disbursement
Lack of official banking credentials or regulatory information
Pressure to complete transactions quickly

Prevention Strategies:

Never accept loan offers from unknown social media accounts
Remember: legitimate financial institutions never require upfront tax or fee payments for loans
Verify loan offers through official banking channels
If unsure, consult consumer protection agencies before sending money
Report suspected fraud immediately to the platform and police
Keep detailed records of all communications with suspected scammers

Where to Report

Police: File reports at your local police station or call emergency services
Consumer Protection Agencies: Report to your country's consumer protection bureau
Financial Regulators: Contact your nation's financial services authority
Social Media Platforms: Use built-in reporting tools for fraudulent accounts
Cybercrime Units: Many countries have dedicated units for online fraud investigation