BRENT residents are being warned not to fall for a scam that has cost some victims hundreds of pounds.

Fraudsters have been offering residents loans but demanding an “administration fee" to arrange the cash transfers.

Unsuspecting members of the public who agree to pay the money are told to send it in cash through MoneyGram or Western Union to countries outside the European Union.

But the loan never materialises and instead the victims are told there is a problem and asked to send more money until eventually they realise they are being conned.

The criminals behind the scam are difficult to trace because of the way the cash is transferred.

Often the victims will have been contacted after visiting a clone of a legitimate website or responding to a spam email.

Councillor Hayley Matthews, Brent Lib Dem spokesman for crime and community safety, said the scam was a problem across the country but particularly in London.

She said: “I’d urge residents to be vigilant when considering taking out a loan in this way.

“If anyone does think they have been targeted, they need to contact Trading Standards so they can try to tackle the problem so no more residents fall victim to these fraudsters.”