Three fraud schemes — and how to spot them
Author: PrivatiPaskola Safety
Most private deals happen honestly, but wherever money moves, fraudsters appear too. Three schemes come up most often. Below — how each works and what to do, concretely, so you don't get caught.
One rule worth remembering before you read on: a genuine private lender never takes money from the borrower first. If someone asks you to pay before you receive anything, it is almost always a scam, not part of the deal.
1. Advance fee
The most common and most recognisable scheme. After a short exchange, the "lender" asks you to pay something before the loan is transferred: "insurance", a "commission", a "contract processing fee" or a "notary deposit". The sum is usually small compared with the promised loan — precisely so it looks harmless.
How it works: once the fee is paid, the fraudster disappears and no loan ever arrives. Sometimes a second payment is requested — "just one last step left".
How to protect yourself: never pay anything upfront. In a legitimate deal, money only ever moves one way — from lender to borrower. Any "fee before payout" is the number-one sign of fraud.
2. Fake lender / identity mismatch
The "lender" looks convincing, but the details don't add up: the name on the account you're asked to transfer to (or that supposedly transfers to you) differs from the person you talked to. Or you're asked to send photos of your card, your ID, or login details "for verification".
How it works: the goal is either to obtain your data for identity theft, or to hide someone else's account. A name mismatch is a sign that you're talking to someone other than whoever actually controls the money.
How to protect yourself: verify identity from an original document, not from a photo or a promise. The name in the agreement, the name on the bank account, and the person you're talking to must all match. Never send card details or logins — a real deal doesn't need them.
3. Third-party or crypto transfer
You're asked to send money to a "friend", a "company" or a crypto wallet, rather than directly to the other side of the deal. The explanations sound reasonable: "my account is temporarily blocked", "it's faster this way".
How it works: money sent to a third-party recipient or into crypto becomes almost untraceable and impossible to tie to a specific transaction. In a dispute, such a transfer is practically impossible to defend.
How to protect yourself: transfer money only by bank transfer, directly to the other side of the deal, and reference the agreement date in the payment description. Avoid payments to third parties and crypto when the deal needs legal certainty. Keep everything in writing.
What to do with a suspicious listing
If a listing or an exchange matches even one of these signs, report it to us by email at info@privatipaskola.lt — include the listing link and what raised your suspicion. The portal removes such listings, but the final check is always done by the parties themselves. How the portal works and what its role is are described on the about us page, and the broader context of a safe deal is on private loans.
Common questions
Can a genuine lender ask for a fee before the loan?
No. In a legitimate deal, money moves only from lender to borrower. Any fee before payout is the number-one sign of fraud.
How do I check whether a lender is genuine?
Verify identity from an original document. The name in the agreement, the bank account holder, and the person you're talking to must all match.
Where do I report a suspicious listing?
By email to info@privatipaskola.lt, with the listing link. The portal removes suspicious listings.