The Michigan State Police (MSP) is alerting citizens about a reported scam involving the online loan company NextWave Solutions.  The company is reportedly based out of Ashland, Mass.; however, according to the Ashland Police Department, NextWave Solutions does not occupy the address listed.

Victims of this scam report applying for a loan on the company's Web site, www.nextwavesolutions.org .  Upon receiving approval, the victims are notified the loan funds will be deposited in their bank account after the lenders receive a collateral payment.  The victims are also asked to sign a contract requiring personal information such as a bank account number and Social Security Number.

Victims are then directed to send the collateral payment to a private person located in Canada, instead of the company.  The company has justified this practice as either cheaper for the victim, or that the individual is the company's primary lender.  Victims report not receiving the loan from the company after providing the collateral.

The best defense against this type of scam is to know whom you are dealing with when you make an online transaction. The MSP also reminds citizens that if something sounds too good to be true, it most likely is.