How to Report Advance-Fee Loan Scams in the Philippines

A practical, step-by-step legal guide (Philippine context)

What this is: A comprehensive handbook for consumers, lawyers, and compliance officers on spotting, documenting, and reporting “advance-fee” loan scams—situations where a “lender” demands a processing/insurance/collateral fee before releasing any loan. What this isn’t: Formal legal advice for your specific facts. If money or data is at risk, act now and consult counsel or the proper authorities.

1) Know the scam you’re dealing with

Typical pattern

Unsolicited offer via Facebook/TikTok/Marketplace, messaging apps, SMS, or email.
“Guaranteed approval,” “government-assisted,” or “BSP-/SEC-approved” claims.
Upfront fees: “processing,” “insurance,” “tax,” “clearance,” “release,” or “account activation.”
Borrower is told to send the fee via e-wallet, bank transfer, remittance, or load pins; after paying, more fees appear or the scammer vanishes.

Why it’s unlawful

Estafa (swindling) under the Revised Penal Code (Art. 315) for deceit and damage.
Operating as a lender without authority (e.g., Lending Company Regulation Act—R.A. 9474; Financing Company Act—R.A. 8556) and unfair, deceptive or abusive acts or practices (UDAAP) under the Financial Consumer Protection Act (R.A. 11765).
Cybercrime Prevention Act (R.A. 10175) when conduct is online (e.g., computer-related fraud/identity theft).
Data Privacy Act (R.A. 10173) if your contacts/photos/IDs are misused or you’re harassed through doxxing.
Truth in Lending Act (R.A. 3765) is also often implicated by misrepresentations about costs.

Key point: Legitimate banks, financing companies, and licensed lending companies do not require non-refundable “release/processing fees” before loan disbursement.

2) Immediate actions (first 24–48 hours)

Stop contact & payments. Do not send more “fees.”
Secure recalls/holds. Contact your bank/e-wallet right away to request a transaction recall/dispute. Provide reference numbers and explain it’s a suspected scam. (Success depends on timing, remaining balances, and recipient cooperation—but speed matters.)
Freeze exposure.
- Change passwords/PINs; enable 2FA on email, e-wallets, banking apps, and social media.
- If you sent ID selfies or card details, monitor accounts and consider blocking/reissuing cards.
Preserve evidence. Save screenshots (full chat threads with timestamps), usernames/links, phone numbers, transaction receipts, bank/e-wallet logs, and any voice/video. Back them up.
Verify the “lender.” Check if the entity is a bank/e-money issuer/pawnshop (BSP-supervised), a lending/financing company (SEC-supervised), a cooperative (CDA-supervised), or insurance-related (IC-supervised). Many scammers impersonate registered names—compare contact details carefully.

3) Where to report (choose all that apply)

A. Criminal investigation & prosecution

PNP Anti-Cybercrime Group (ACG) or your local police station Use for online fraud, extortion, harassment, identity theft.
NBI Cybercrime Division / NBI Anti-Fraud Use for complex or cross-border cases, account takeovers, or organized rings.

What to file: A Complaint-Affidavit with annexes (see Template A). For cyber cases, bring digital evidence on a USB and printed screenshots with hash values if available. You may proceed to the Office of the City/Provincial Prosecutor after investigation or for regular filing.

B. Financial sector regulators (administrative remedies)

SEC (Enforcement & Investor Protection, and Lending/Financing supervision) If the entity is an unregistered “lender,” an online lending app, or a registered lending/financing company engaging in deceptive or unfair practices (e.g., advance-fee demands, harassment).
BSP Consumer Assistance If the counterparty is a bank, e-money issuer (e-wallet), remittance agent, or pawnshop. You can also file here to escalate failed transaction recall/dispute requests.
CDA (Cooperative Development Authority) If the “lender” is a cooperative or pretends to be one.
Insurance Commission (IC) If the “fee” is framed as compulsory “insurance” tied to a supposed loan.

C. Privacy & harassment

National Privacy Commission (NPC) If your phonebook/photos were scraped, you’re being shamed in group chats, or contacts were messaged—common with rogue OLAs. NPC can issue compliance orders and penalties for unlawful processing.

D. Platforms & telcos

Social media and marketplace platforms (Facebook, TikTok, etc.) Report the account/page/ads; attach case numbers from authorities to accelerate takedowns.
Telcos / SIM owner (R.A. 11934—SIM Registration Act) Report the number used; ask about blocking measures and preservation of records for investigation.

Tip: Reporting to both law enforcement and the correct regulator strengthens your case and helps stop repeat victimization of others.

4) How to prepare a strong report

A. Evidence checklist (what authorities typically ask for)

Your valid ID and contact details.
Narrative: When, where, how you were contacted; exact promises/assurances; every fee demanded; what you paid; what happened after.
Screenshots/exports: Entire chat/email threads (include profile URLs, group names, phone numbers, email headers).
Payment proof: Bank/e-wallet receipts (reference/trace numbers, date/time, amount, destination account or mobile number).
Call logs/recordings (if any).
Any “documents” sent by the scammer (fake approvals, IDs, certificates).
Your recall/dispute ticket from the bank/e-wallet and its status.

B. Organize your file

Label annexes: Annex A—Timeline; Annex B—Chat screenshots; Annex C—Receipts; Annex D—Scammer profile links; Annex E—Proof of attempts to recall funds; etc.
Keep original digital files; provide printed copies for ease of review.
For online evidence, note date/time captured and the URL/handle. The Rules on Electronic Evidence allow electronic data as evidence when properly authenticated.

C. Elements to allege (for estafa)

Deceit (false pretenses like guaranteed approval and regulator name-dropping).
Reliance (you paid because of those lies).
Damage (loss of the advance fee and related costs).
Online use of devices/systems (to support cybercrime qualifying circumstances).

5) Filing pathways, step-by-step

Path 1 — Criminal (police/NBI → prosecutor → court)

Draft and notarize (or swear before the prosecutor) your Complaint-Affidavit with annexes.
File with PNP-ACG or NBI; get a reference number.
Attend clarificatory conferences; submit devices/logs if requested.
Upon completion, case may be referred to the Prosecutor for preliminary investigation.
If probable cause is found, an Information is filed in court.

Barangay conciliation? Usually not required for online scams where parties reside in different cities/municipalities, where the respondent’s address is unknown, or for offenses affecting public order. Ask the prosecutor’s office if unsure.

Path 2 — Administrative/regulatory

Identify the right regulator (SEC/BSP/CDA/IC) based on the scammer’s claimed status.
Submit a regulatory complaint describing deceptive practices and attaching evidence.
Regulators may issue advisories, suspend/cancel licenses, order takedowns, or refer for criminal action.

Path 3 — Privacy enforcement (NPC)

File a privacy complaint detailing unlawful collection/processing (e.g., scraping contacts, public shaming).
NPC may order cease-and-desist, data erasure, and administrative fines; it can also refer criminal aspects to the DOJ.

Path 4 — Civil recovery

Demand letter seeking refund, damages, and interest (use Template B).
Small Claims suit for pure money claims up to the current threshold (verify the latest amount and rules before filing).
For larger claims or with damages, file an ordinary civil action.

6) Special scenarios & practical tips

Impersonation of a real bank/lender: Also report to the legitimate institution’s fraud team; they can issue public warnings and support investigations.
Money moved through multiple e-wallets/banks: Give every hop with timestamps; law enforcement can request KYC and transaction histories from the institutions.
You sent IDs/selfies: Monitor for identity theft; consider requesting a credit report from the Credit Information Corporation (CIC) and dispute unauthorized entries.
Harassment/“debt shaming”: Save all messages, screenshots, and voicemail. Report to NPC and the relevant regulator; unfair collection tactics are prohibited by sector rules.
Cross-border actors: The NBI/PNP can coordinate internationally; you still file locally with the Philippine authorities where harm occurred.
Time limits (prescription): Criminal and civil claims have deadlines. Do not delay—consult counsel early to avoid prescription issues.
No more payments: Scammers often demand more “fees” after the first one (taxes, certificates, anti-laundering clearance, etc.). These are red flags—stop and report.

7) Templates you can adapt

Template A — Complaint-Affidavit (criminal)

REPUBLIC OF THE PHILIPPINES )
CITY/PROVINCE OF __________ ) S.S.

COMPLAINT-AFFIDAVIT

I, [Name], of legal age, Filipino, with address at [address], after having been duly sworn,
state:

1. I was contacted on [date/time] via [platform/number/link] by [name/handle/number].
2. Respondent represented that I was approved for a loan of ₱[amount] subject to an upfront
   [processing/insurance/activation] fee of ₱[amount], allegedly required by [agency/bank].
3. Relying on these representations, I sent ₱[amount] on [date/time] via [bank/e-wallet],
   Ref. No. [reference]. Screenshots and receipts are attached as Annexes “A” to “C”.
4. After payment, Respondent demanded additional fees and failed/refused to release any loan.
   I suffered loss and damage of at least ₱[amount].
5. I believe Respondent committed Estafa under Art. 315 of the Revised Penal Code, and
   computer-related offenses under R.A. 10175.

PRAYER: That this Complaint be investigated and charges be filed.

[Signature over printed name]
Affiant

SUBSCRIBED AND SWORN to before me this ___ day of ______ 20__, affiant exhibiting
[ID type/number].

Template B — Demand for Refund (administrative/civil)

[Date]

[Name/Handle/Entity]
[Known address/email/number]

RE: DEMAND TO REFUND ADVANCE FEE

I paid ₱[amount] on [date] for a purported loan under your instruction. No loan was released.
Your acts constitute unlawful advance-fee lending, misrepresentation, and deceptive practices.
Demand is made for the full refund of ₱[amount] within five (5) days from receipt, otherwise I
will pursue criminal, administrative, and civil remedies without further notice.

Sincerely,
[Name / contact details]

Template C — Bank/e-Wallet Incident Report (recall/dispute)

Subject: URGENT — Recall/Dispute of Suspected Scam Transfer (Ref. [number])

Hello, I request immediate recall/hold of my transfer on [date/time] amounting to ₱[amount]
to [recipient name/number], Ref. [number]. This was made in reliance on deceptive loan
representations. Please preserve records and advise on the dispute/chargeback process.

[Your name, mobile, account number, IDs attached]

8) Frequently asked questions

Do I need a lawyer? Not to report or file with regulators, but counsel helps assess strategy, preserve electronic evidence properly, and draft affidavits that meet elements of estafa and cybercrime.

Can I still recover my money? Possible through recall/dispute, settlement, or civil judgment, and occasionally via asset freezes during criminal proceedings. Recovery depends on speed, traceability, and whether funds remain.

Is barangay conciliation required? Usually no for online scams where parties live in different cities/municipalities or addresses are unknown, and for offenses affecting public order. When in doubt, ask the prosecutor’s office.

What if the “lender” is registered? Even licensed entities can commit UDAAP under R.A. 11765. Report to their sector regulator (SEC/BSP/CDA/IC) and to law enforcement if there’s fraud.

9) Final checklist (print-ready)

Stop contact; no more payments.
Call your bank/e-wallet; file recall/dispute; get ticket numbers.
Save full chats (with IDs/handles/links), receipts, and call logs.
Identify the proper regulator (SEC/BSP/CDA/IC) and file an administrative complaint.
File a criminal Complaint-Affidavit with PNP-ACG/NBI; bring organized annexes.
If contacts were scraped or you’re harassed, file with NPC.
Report the account to platforms and the SIM number to the telco.
Consider civil recovery (demand letter, small claims/ordinary action).
Monitor accounts, change passwords, enable 2FA; check your CIC credit report.
Keep a timeline and update authorities with new intel (numbers, accounts, aliases).

Closing note

Advance-fee loan scams exploit urgency and hope. The law gives you multiple tracks—criminal, regulatory, privacy, and civil—to stop the abuse and try to recover losses. Start with evidence preservation and fast notices to your bank/e-wallet, then file with law enforcement and the sector regulator best placed to act on your case.