How do online loan scams work?

Online loan scams typically involve unsolicited offers via email, text, or phone calls. Scammers may promise quick approval, low interest rates, or guaranteed loans, but their goal is to collect fees or sensitive information such as Social Security numbers, bank account details, or online banking credentials. Common tactics include fake check deposits, requests for gift cards, cryptocurrency, or wire transfers, and impersonating legitimate lenders or government agencies to gain trust and urgency.