The Securities and Exchange Commission (SEC) reminded the public to verify the registration and authority of financing and lending companies, including their online lending platforms, prior to doing business with them amid the proliferation of scammers pretending to be lenders.

This comes as the SEC warned the public against engaging persons or companies pretending to be representatives of Paragon Credit Alliance 604 Corp., a company registered with the regulator, to offer loan services.

In an advisory, the SEC said it has found that individuals and entities were engaged in the unauthorized use of Paragon Credit’s company name to deceive potential clients through the use of fake logos, and the operation of fraudulent social media accounts, websites, and unregistered lending platforms.

“Reports indicate that these fraudulent schemes commonly involve advance-fee arrangements, where individuals are required to pay processing fees or other charges prior to the release of a purported loan,” said the SEC advisory.

It reminded the public that such arrangements are a common modus operandi of fraudulent lending schemes. Paragon Credit has also informed the SEC that it does not require advance payments prior to the release of loans.

Last week, the SEC also issued warnings against three posers that impersonate and falsely use the corporate names of registered companies to offer loan products.

The SEC flagged the operations of unrecorded online lending platforms “Peso Maya” and “Pesolending,” which falsely use the company name of Micropinnacle Technology Corp.

Micropinnacle has categorically denied any connection with these platforms. The regulator emphasized that only financing and lending companies duly registered with the SEC and with properly recorded online lending platforms (OLPs) are authorized to offer loans through online platforms.

The SEC also warned the public against an unauthorized and fraudulent website, identified as https://www.projectduetech.com/#/, which illegally represented itself as affiliated with Project Duo Integrated Communications Corp. to offer loan products and other financial services to the public.

The SEC said these activities “exhibit hallmarks of fraudulent and deceptive schemes,” including corporate impersonation and the potential misuse of personal data. These acts are not sanctioned by the SEC and are not part of the legitimate operations of Project Duo.

Additionally, the SEC issued an advisory against individuals and entities misrepresenting themselves as affiliates of Carmen Credit 888 Corp.

Reports received by the SEC indicate that these unscrupulous actors are using the company’s name to deceive the public through the use of fake logos, fraudulent social media accounts, unauthorized websites, and online lending platforms that are not authorized or recorded with the regulator.

Their schemes usually involve advance-fee loan scams, wherein victims are required to pay upfront fees before the release of their purported loans.