Car loan scams often start the same way a genuine application does. You search for finance, fill in an online form and someone gets back to you quickly with good news. The difference shows up when documents and money are meant to change hands. This guide sets out the checks to run before you send either, using the warning signs published by Scamwatch and the free registers run by ASIC.
The short answer: an Australian credit licence from ASIC is what allows a business to legally provide credit or arrange it for consumers, and a broker can instead act as an authorised credit representative of a licensee. You can check both for free on ASIC's Professional Registers Search. A licence number on its own does not prove who you are dealing with, because scammers copy real licence details. Contact the business on a number you found yourself before you send documents or pay anything.
How car loan scams work in 2026
In March 2026 Scamwatch issued an alert about personal loan scams. Scamwatch is run by the National Anti-Scam Centre, according to Moneysmart. The alert describes scammers who:
- set up fake loan websites and advertise on social media, posing as lenders and loan brokers
- approve an online application, then send a loan contract and ask for photo ID, payslips, bank statements and login details for your bank and myGov
- ask for an upfront fee for "payment protection" insurance or "loan establishment" before any money is released, refuse to deduct it from the loan, and say it will be refunded after three months
- impersonate real licensed businesses and quote genuine ABN and ASIC credit licence details to look legitimate
Scamwatch says anyone looking for a loan can be targeted and that people experiencing financial hardship may be particularly vulnerable. Someone who has just been declined elsewhere, or who needs a car quickly to get to work, fits that description, which is why the checks below matter most when you feel rushed.
The upfront fee is the clearest warning sign
Genuine car loans do carry costs. Our guide to car loan fees covers the establishment, broker and dealer fees a real loan can include, and explains that they are often added to the amount you borrow.
The scam in the Scamwatch alert looks different. Each of these appears in the alert as part of the scam or as a listed warning sign:
- the fee must be paid in full before any loan funds are released
- you are told it cannot be taken out of the loan amount
- the money is to go to a personal bank account
- you are promised a refund after three months
If a lender or broker asks you to pay money before your loan settles, treat that as a reason to stop and verify the business before you pay anything.
How to check a lender or broker before you apply
ASIC's register is free to search by name, licence or registration number, ACN or ABN, and you can filter the results to credit licensees or credit representatives. Its free information includes the name, licence or registration number, address, start date, status and any conditions on the licence. Work through these checks in order:
- Get the details in writing. Ask for the business's full legal name, ABN and Australian credit licence number, or its credit representative number and the licensee it acts for.
- Search ASIC's register. Confirm the entry exists, the status is current and the name matches the business you are dealing with exactly. A small spelling difference or a different trading name is worth querying.
- Check the licensee too. Credit representatives are authorised to engage in credit activities on behalf of a credit licensee, so search the licensee named in their documents as well.
- Search the investor alert list. ASIC's investor alert list on Moneysmart names businesses and websites that may be unlicensed or impersonating a real company. Scamwatch lists appearing on it as a warning sign. The list is framed around investment offers, and Moneysmart says not finding a name does not mean you can trust it.
- Call on a number you found yourself. Scamwatch says that even if you have been given ASIC company and licence details, you should check the contact by calling the organisation on a number you source yourself. One way is to type the business's web address into your browser yourself rather than using links or numbers in the message you received.
- Check the account name before paying anything. Scamwatch recommends confirming the account name matches who you intend to pay.
A licence tells you a business is allowed to engage in credit activities. Moneysmart notes that holding a credit licence does not mean ASIC endorses the licensee, so it is not a sign that a particular loan suits you. You still need to compare the rate, fees and total repayable.
You can run the same checks on us
Loanseekers is a broker, not a lender. Our credit guide names the Australian Credit Licence we act under, 383999, held by Ausloans Finance Group, and our membership of the Australian Financial Complaints Authority. You can check those details on ASIC's register and contact us through our contact page before you apply. Our lender reviews show the lenders we compare.
Sending documents safely
A genuine car loan application does need identity and income documents. Our guide to what lenders check on your bank statements explains why. Scamwatch lists messages asking for personal details and identification documents as a warning sign, so the order matters: confirm who you are dealing with first, then provide documents.
- Send documents only after the checks above, and only through a channel you reached by contacting the business yourself.
- Do not send passwords or login details for your bank or myGov in an email, text or social media message.
- Keep a record of who you sent documents to and when, in case you need to report it later.
What to do if you think you have been scammed
Scamwatch's alert sets out what to do if money or personal information has been taken:
- contact your bank or card provider immediately
- change your passwords if you think your accounts have been compromised, and watch your statements for unusual activity
- call IDCARE on 1800 595 160 if you have been scammed or have given out personal information
- report the scam to Scamwatch to help warn others
If your complaint is with a genuine financial firm, for example about fees or how an application was handled, AFCA offers a free, independent complaints service. AFCA says the first step is usually to raise the problem with the firm directly. If a loss has made it hard to keep up with an existing loan, our guide to asking your lender for hardship help explains the options.
Before you apply
These checks take a few minutes, and they are worth doing even when an offer looks genuine. If you are getting ready to apply, our guides to car loan pre-approval and what happens at settlement after approval show what a normal process looks like, and our car loans page explains how we compare lenders.
This article is general information only and does not consider your personal circumstances. Sources were checked on 25 October 2026.
