People who wanted to borrow money lost at least $2.4m to scams in 5 months after responding to online ads
At least 375 loan scam cases were reported with total losses amounted to at least $2.4 million between January and May, said the police in a July 17 news release.
The scam victims would come across short video clips or advertisements promoting fast cash loans on social media platforms such as TikTok and Facebook, or through internet searches.
Victims would also sometimes receive an unsolicited text message offering loans through SMS or WhatsApp.
Those who replied with the intention to take up the loans would be asked to transfer money purportedly for purposes such as payments for "account clearance," "lawyer fees" or "insurance fees".
The victims would then be instructed to transfer money through methods such as iBanking, ATM deposits, PayNow or cash in person.
In some cases, scammers would identify themselves as a "branch" or "business partner" of legitimate licensed moneylenders. They would instruct victims to take a loan from these licensed money lenders and transfer the money obtained from the loan to the scammer.
In other cases, the victims would be instructed to purchase mobile phones with SIM cards registered under their own name before handing the phones to a mule for their loan request to be accepted.
Victims would realise that they had been scammed only when the scammers failed to disburse the loan as promised.
The police remind the public of the following regarding licensed moneylenders:
- Licensed moneylenders are not allowed to advertise their services except through business or consumer directories (in print or online), internet websites belonging to the licensed moneylenders, and those placed within the approved place of business.
- Licensed moneylenders are not allowed to solicit loans via text messages, phone calls or social media platforms.
- Licensed moneylenders are required to meet the borrower in person at the approved place of business to conduct physical face-to-face verification of the borrower's identity before granting any loan. A loan transaction performed fully online is not allowed.
- Licensed moneylenders will not ask a loan applicant to make any payment (such as for GST, "admin fee", "processing fee", or any other fee) before the disbursement of a loan or to secure the disbursement of a loan. Licensed moneylenders are only allowed to deduct an administrative fee from the loan principal that is disbursed to the borrower.
Concerning misuse of SIM cards the, police said: "It is an offence for individuals to misuse their eSIM or SIM card via reselling, allowing others to use their SIM cards, helping other individuals to register or holding multiple SIM cards without a legitimate reason."
For more information on the misuse of SIM cards, visit Misuse of SIM Card.
Members of the public are advised to take precautionary measures against scams by applying the ACT acronym, which outlines three steps to take: Add security features, check for signs of a scam with official sources, and tell the authorities and others when you encounter scams.
For more information on scams, visit www.scamshield.gov.sg or call the ScamShield Helpline at 1799.
