Loan Scam
Loan scams involve fraudulent schemes where scammers offer loans with attractive terms, intending to extract upfront fees or steal personal information rather than provide any actual financing.
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Loan scams target individuals who urgently need financial assistance. Fraudsters pose as licensed moneylenders or financial institutions, offering quick approval with no credit checks. Once the victim pays the upfront processing fee, the loan never materialises. The victim is left worse off financially, and their personal data may be used for further fraud.
How Loan Scams Are Carried Out
1. Upfront Fee Requests
Scammers request processing or administrative fees before disbursing the loan. Once fees are paid, the promised loan never materialises and further fees are invented.
2. Fake Loan Offers
Fraudsters advertise loans with extremely favourable terms — no collateral, instant approval — to attract victims desperate for financing. The real goal is to collect fees and personal data.
3. Identity Theft
Loan scams harvest sensitive financial and personal information under the guise of loan processing. This data is then used for identity theft or sold to other criminals.
4. Unlicensed Moneylenders
Scammers may pose as licensed moneylenders. Always verify against the Ministry of Law's official list of licensed moneylenders before providing any information or payment.
What to Look Out For
How to Protect Yourself from Loan Scams
Verify with the Ministry of Law
Only borrow from moneylenders listed on the Ministry of Law's registry at mlaw.gov.sg. Licensed institutions will never demand upfront payments before loan disbursement.
Never Pay Upfront Fees
If a lender asks for any payment before your loan is disbursed, it is a scam. Stop all communication, preserve evidence, and report the incident immediately.
Report Loan Scams
Report suspected loan scams to SPF at 999 or 1800-255-0000, and to the Registry of Moneylenders at 1800-2255-529 for further investigation.
Report a Loan Scam
If you have paid fees to a fraudulent lender or shared personal information with an unverified source, report it immediately.
Loan Scam: Your Questions Answered
Loan Scam in Singapore: Your Questions Answered
Licensed moneylenders in Singapore are listed on the MinLaw Registry of Moneylenders. Scammers often pretend to be licensed lenders but contact victims via WhatsApp or Telegram.
Stay Informed, Stay Protected
Loan scams exploit financial need. Only use licensed moneylenders verified through the Ministry of Law.