BEWARE OF SCAMS

What are Loan Scams?

Loan scams are social media or SMS messages and calls offering loans to people. Scam artists are professional scammers and they will make it seem that they come from a professional and licensed moneylender. The usual instructions by scammers to interested people is to transfer money before a loan can be disbursed. After the transaction is done, scammers would block the victims and successfully steal their money. Scammers may ask private information of victims such as NRIC, Singpass details and bank account numbers. Once the information is obtained, scammers would threaten to expose details or steal information to gain money.

How to avoid being Scammed?

• No matter how tempting the offer is, ignore all the advertisements and messages and immediately block the number.
• Remember that it is illegal for licensed moneylenders in Singapore to advertise through SMS or WhatsApp.
• Verify if the moneylending company is licensed through https://rom.mlaw.gov.sg/information-for-borrowers/list-of-licensed-moneylenders-in-singapore/
• Never provide private information NRIC, Singpass details or bank accounts to organizations you don’t trust especially through SMS or social media.
• If you are in need, seek financial help through authorized financial institutions.
• Don’t hesitate to call the National Crime Prevention Council's X-Ah Long hotline at 1800-924-5664 to provide information on unlicensed moneylending.

Signs that show lender might be a scammer

• Lender shows no interest in your payment history and only wants to land a deal
• Reputable lending companies, make sure you have a good history before landing a deal. However, scammers tend to target high-risk borrowers as they tend to be more desperate.
• The lender is not registered
• All money lending companies operating in your state should be registered. Double-check and verify
• Demands of a prepaid debit card as collateral
• Scammers will require a debit card as insurance but lending companies charge a fee that is deducted from your loan. A prepaid debit card is effective for loan scams as it is untraceable as cash.
• No Physical Address
• Technology such as google maps can show if a lender has a physical location. If there’s no actual physical address, avoid the lender. Scammers would hide and be untraceable to avoid legal consequences.
• Lender asserts pressure to take the deal
• Scammers would give tempting deals and sweet talk you to pressure you to pay as early as possible before finding out they are scamming you.

How to spot a legitimate lender?

• Easy to Reach
• Has a physical address, contact number, customer service, email and usually have a chat function.
• Professional Customer Service
• The staff of lending companies are educated and trained, they can answer your questions and even provide suggestions.
• Credit History Interest
• All legitimate lenders will not give you a loan if you won’t have the ability to pay back, lenders conduct a thorough background check before granting you a loan.
• Complete loan terms and contract
• Lenders are clear for their terms and will provide physical evidence of the contract to ensure legitimacy.
• No upfront payments such as gift cards
• Lenders would talk first and negotiate a deal before any payment.

What can you do when you get scammed?

• File a police report as soon as possible.
• Prepare evidence and documentation to prove to authorities on the issue.
• Contact people and spread awareness to avoid future scams.