As banks tighten lending in the U.S., entrepreneurs seeking alternative credit sources are becoming victims of fraud.

“While the nation is focused on the credit crunch and its affect on behemoths like Bear Stearns, the impact is also being felt by small businesses that are trying to stay afloat in hard times and are very susceptible to fraudulent loan offers,” said Steve Cox, BBB spokesperson. “The Internet provides a perfect stage for fraud because bad actors in the loan industry can easily portray a professional image that provides unsuspecting small business owners with a false sense of trust.”

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