Malaysians Still Easily Fall Prey To Loan Scammers

Malaysian police have recently busted a loan scam syndicate operating in Kajang and Cheras recently.

During the raid, police also found conversation guide books that these loan scammers use to cheat their victims. According to the police, these scammers do not even have to meet their potential victims, they are so skilled that they carry out the entire process via text messages or chats on social media.

Posing as licensed moneylenders, scammers have reportedly collected about RM90 million over the course of three years.

These scammers lure in victims who are desperate for cash with the promise of low-interest loans, and then make them pay a hefty sum in fake administrative charges.

The victims, who are in dire need of money, end up paying the fees. The scammers then disappear without a trace and the victims do not get any loan.

Bukit Aman Commercial Crime Investigation Department deputy director said that some victims even end up paying fees that are higher than the loan itself.

“In one case, a victim applied for a RM20,000 loan but ended up paying RM30,000 in additional fees.  It is the classic three Ks of victimhood – kesusahan (hardship), ketamakan (greed) and kejahilan (ignorance),” he said.

“The cases are increasing every year. As of Wednesday, we’ve recorded 3,903 cases and arrested 2,698 people, with total losses so far this year at RM36mil,” he added.

[Source]