Ontario man scammed trying to send money to family in Ukraine

Canadians lost $7 million to criminals in loan scams in 2021, which is more than double the $3 million that was lost to loan fraud in 2020.

One of the most popular scams involving loan fraud is the advance fee loan scam, where thieves ask you to pay in advance to secure a loan and it never materializes.

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“I just really wanted to help my family. It’s hard with the war and the food shortages and gas shortages. It's just a very hard time," said Sergiy Polishchuk, of Richmond Hill, Ontario.

Polishchuk wanted to send money to his father and other relatives in Ukraine to help them stay safe, buy supplies and to try and avoid the conflict that has overtaken the country.

Polishchuk also wanted to send money to help pay for a tombstone for his grandmother’s gravesite.

“This is a picture of my grandma. She has passed away and that's a picture of the gravestone we plan to get for her," said Polishchuk.

Polishchuk went online and found a loan company that agreed to lend him $10,000, but he was told he had to make an advance payment of $1,450 for insurance to secure the loan.

After he did that he was then told he was approved for a $20,000 loan, but he needed to send another $1,450 in insurance fees.

After Polishchuk did that they said he was then approved for $35,000 and they wanted another $1,550, but he refused and asked for a refund.

The loan never materialized he lost his $2,900 and the company stopped returning his calls and emails.

“I feel upset. I feel frustrated. I learned my lesson. Sometimes you live and learn," said Polishchuk.

Polishchuck applied for the loan through an online company called Mariner Financial Service. CTV News Toronto called and emailed the company but our messages were not returned.

The company has an Ottawa address and when CTV News Toronto went to the building there was no indication that Mariner Financial Service had an office there.

The Canadian Anti-Fraud Centre said that anyone looking for a loan online must be extremely careful.

“There are so many fake or fraudulent loan companies out there it's important to do your research," said Jeff Horncastle, Communications Outreach Officer with the Anti-Fraud Centre.

Horncastle said companies offering loans online may say they don't require a credit check and that everyone is approved, but as soon as they ask you to pay in advance to get a loan -- that's a sign it's a scam.

“It's important to know that you should never have to pay an amount upfront to receive a loan and in most provinces in Canada it is illegal to ask for prepayment of a loan,” said Horncastle.

Polishchuk wanted to share his story to warn others to be careful when trying to get a loan and said he is still hopeful he can find a way to send money to his family in Ukraine.

If you apply for loans online you're also giving out a lot of your personal information, so it’s important to be cautious because even if you don't get scammed paying in advance, you could also make yourself a target for identity theft.