Loan Scams Singapore: An ultimate guide

What are Loan Scams in Singapore?

Victims would receive unsolicited text messages or stumble across websites or adverts soliciting loans in these situations. Victims who responded with the purpose of taking out loans were then redirected to a WhatsApp group to discuss the loan application, during which the scammers would ask for personal information in order to process the loan application.

The scammers would then inform the victims that their loan had been approved and ask them to pay a variety of costs, including collateral fees, processing fees, and transfer fees.

The con artists would next send false letters or emails purporting to be from banks or government bodies like the Singapore Monetary Authority or the State Courts.

These letters could also state that a processing charge or tax payment is required before the loan can be disbursed, based on specific restrictions. When the victims did not get the loan, they realized they had been duped.

How to be aware of it?

  1. Text messages, phone calls, and social media platforms are not permitted for licensed moneylenders to solicit loans.
  2. Before providing any loan, licensed moneylenders must meet the borrower in person at the permitted place of business to undergo physical face-to-face verification of his identity.
  3. Licensed moneylenders will not require a loan applicant to make any payment prior to the loan’s issuance or to secure the loan’s disbursement.
  4. Before a loan can be disbursed to the borrower, licensed moneylenders will not request a processing charge or tax payment to any government agency.

List of the known loan scams in Singapore?

1. Loan sharks are predatory lenders.

It is implying that you are aware of this group of money lenders, known to Singaporeans as ” Ah long.” Loan sharks or fraudsters frequently utilize dishonest, unfair, or fraudulent techniques to entice borrowers who are in severe need of cash.

2. Upfront fee

Before you can be approved for a loan, upfront fee scams will need you to pay a charge upfront. These lenders will justify the fees by implying that it is a mandatory processing fee that all of their borrowers must pay.

3. Guarantee on Personal loans

These loans are also known as negative credit loans. These loans are typically designed to be used for a brief period of time. They are also quite easy to get to. This makes them appealing to the majority of individuals. Beware of any guarantees that provide you with a loan without first assessing your credit score, income, or other personal information.

4. Fishy tactics

The intimidation and harassment may occur both before and after you receive the loan from these types of money lenders.

Tips to avoid the loan scam

  • Ignore these adverts and do not respond to them. Instead, use the ScamShield mobile app (Apple), WhatsApp, or other third-party apps to ban or report the number as spam; and
  • Give no one your personal information, such as your NRIC, SingPass, or bank account information.
  • It’s usually a good idea to do some research on the lender you’re working with. Is there a physical address for them? A potential loan scammer’s lack of an office or physical address is a red flag.
  • If the lenders you’re dealing with ask for money to guarantee loan approval, ignore them and denounce them to the authorities right away.
  • When proposing you a loan, a loan fraudster may try to entice you with extremely cheap interest rates, so ignore them.
  • Reporting scammers to the appropriate authorities is the greatest way to protect yourself and others from them.

ScamShield Office Singapore

Address: 28 Irrawaddy Rd, Singapore 329560
Map: View direction here
Email: For General Enquiries & Feedback scamshield@ncpc.org.sg

How scammers in Singapore are using the Loan scam to Scam people?

  • Unsolicited direct text/email messages are sent to you.
  • Prior to approving your loan, they will ask for deposits.
  • They demand your passwords.
  • They want to keep your identification card as a security deposit.
  • They do not give you a loan agreement.
  • They are without a recorded address.
  • Because the offer is about to expire, you must ‘act now.’
  • They provide assurance of approval.
  • The loan offer is either insufficient or illegal.

Where to complain if you are facing the problem with Loan Scams?

Call Singapore Police

Please call the Singapore Police hotline at 1800-255-0000 or submit your information online at www.police.gov.sg/iwitness if you have any information about these offenses or if you have any doubts. If you want immediate police assistance, phone ‘999’.

Scam alert website

Scams can be learned more about by going to www.scamalert.sg or call the Singapore Anti-Scam Hotline at 1800-722-6688. To receive timely alerts and share them with your family and friends, sign up as an advocate for the ‘Spot the Signs. Stop the Crimes’ campaign at www.scamalert.sg/fight. If we cooperate together, we can help fight fraud and prevent our loved ones from becoming the next victim.

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