Loan Scams: Fake Lenders and Advance-Fee Traps

Loan scams target people who need cash quickly. Fake "lenders" advertise easy approval with no documents, then demand an up-front "processing fee", "insurance" or "first instalment" before releasing a loan that never arrives.

How the scam works

After you apply, you are told you are approved but must first pay a fee to "unlock" or "guarantee" the loan. Once you pay, there is always another fee, or the scammer disappears. Some keep the copies of your IC and selfies you sent and use them for further fraud.

Warning signs

• Loans approved instantly with no proper checks.
• Any fee demanded before you receive the loan.
• Lenders operating only through WhatsApp or Telegram.
• Requests for your IC photo, selfie holding your IC, or banking login.

How to protect yourself

• Borrow only from licensed banks or moneylenders listed by the Ministry of Local Government Development (KPKT).
• A legitimate lender deducts fees from the loan — it never asks you to pay first.
• Never send photos of your IC or selfies with your IC to unknown "lenders".
• Check the lender's account on PDRM Semak Mule.

If you have already paid

Stop paying, keep all records, and call 997. If you shared your IC or photos, watch for accounts opened in your name and report any misuse.