Alerts - Advance Fee Loan Scams
Please be aware that it is illegal in both Canada and the United States to ask for money upfront for a loan. Please do not send in the requsted money as you will receive absolutely nothing in return. If you have sent in money or personal information, please read below for more information. Although these fraudulent companies are asking for upfront money for 'insurance reasons' or 'in order to get the money across the US-Canada border', it is still illegal, and you will not receive your loan. If you have sent in any money or personal information (such as your Social Security Number, Driver's Licence Number, etc.) to any advance fee loan companies, it is vital that you report it.

During the past two years the office of the Canadian Council of Better Business Bureaus in Ottawa, Canada has received between five to ten calls from victims or near victims of the Advance Fee Loan Scam each day.

In all cases, the profile is the identical except for the "name" of the company and "insurance" provider. The companies are all traced to mail box drops

This site has a nice write up about advance fee loan website scam.
I also found this page on phonebusters.ca
http://phonebusters.com/english/recognizeit_advfee.html

phonebusters.ca gives the following description of

Advanced Fee Loans Scams
Ads that promise loans generally appear in classified sections of local and national newspapers, magazines and tabloids.

Remember: simply advertising through recognized media outlets does not ensure the legitimacy of the company behind the ad.

Some companies claim they can guarantee you a loan even if you have bad credit or no credit. They usually request an up front fee, which may range from hundreds to thousands of dollars. Once you send your money to these companies, you never get your promised loan and you cannot get your money back. If you cannot get a loan through traditional lending institutions, it is unlikely that you'll get one in response to a classified ad. Ask the loan company to take the amount of their fee off of the total amount of the loan that was promised you. In most jurisdictions, it is illegal for a company to request an up front fee prior to obtaining a loan.