These days, the world is in a state of flux. Even Jack Ma is struggling.

As soon as things get rough, the tough call to work. A scammer is not exempt from this adage, which is unfortunate.

Even without a pandemic (or possibly because of a pandemic), the number of online scams has risen.

Beware of loan sharks. 

A tremendous window of opportunity has opened for scammers, such as loan sharks, because individuals are online 24 hours a day for work and entertainment and buy their requirements.

Loansharks can be scammers. How to: As a loanshark, you might claim to be a certified moneylender online to get that urgently needed loan.

Loan sharks are more common than professional moneylenders, although it’s usually too late to tell.

You’ll acquire the money you need, but at the cost of your sanity, of course.

Some loan sharks offer outrageous interest rates and will do anything to get their money back, Including bugging your family and neighbors and utilizing extortion and intimidation techniques that are sometimes inventive.

How licensed moneylenders should operate

Phone calls, text messaging, and social media advertising have been prohibited for licensed moneylenders since November 1, 2011. Nope, not even Google AdWords can help you out.

However, they can advertise their services:

  • (both print and online) Business or consumer directories;
  • On their websites; and
  • On or around their premises.

Licensed moneylenders who intentionally violate the rules by printing fliers or sending SMSes and emails, as well as loan sharks, are examples of those who break the restrictions.

Weekly, 8:30 am to 5 pm, you can reach the Registry of Moneylenders (ROM) or call 1800-CALL-LAW (1800 2255 529). Their website has a contact form you may use to send them a message.

To verify the borrower’s identification, licensed moneylenders must meet with the applicant in person at an approved business location before approving the loan. 100% of loan transactions cannot be completed online.

However, not all licensed moneylenders are ethical. Be on your guard.

Do not sign the loan contract if the licensed moneylender does any of these things before or after you do.

• Remember to save a copy of your NRIC or other key personal documents (such as a driver’s license or passport);

• Asks for your Singpass user ID or password;

• Uses abusive or threatening language;

• Makes false or misleading statements;

• Grants you a loan without explaining the terms and conditions of the contract clearly to you;

• Asks you to sign on a blank or incomplete Note of Contract for the loan;

• Does not give you a copy of the Note of Contract for the loan;

• Leads you to believe you have been granted a loan although you have not applied for it;

• Without completing customary procedures (e.g., without meeting you in person or getting documents that authenticate your identification, approving a loan over the phone), grants you the loan.

• Withholds any part of your principal loan for no apparent reason;

• To your workplace, you send unattached demand notices.

• Has you or your family members harassed or stalked into making a repayment; and

• Hurts the neighbors of your home.

How loansharks scam their victims 

In many cases, a loanshark poses as a legal moneylender by creating a website or social media account virtually identical to that of the licensed moneylender – down to the website location, design, and even the firm name Unique Entity Number (UEN).

On closer inspection, the licensed moneylender and the spoof website will have different telephone numbers, as you can observe from the Ministry of Law’s list of licensed moneylenders.

It’s safe to assume that a licensed moneylender’s website with a matching phone number on MinLaw’s list is legitimate.

The loanshark may ask you for private information, such as your NRIC number, address, and contact number, via bogus websites and social media profiles.

Loan sharks may also send SMS or WhatsApp messages, claiming to be licensed moneylenders and pretend to be licensed money lenders.

As an alternative, they may send a text message or phone and ask you to send a payment in the form of GST or processing charges before granting you a credit card or personal loan.

Published On: September 9th, 2021 / Categories: Uncategorized /