How to Report a Loan Scam in Singapore: A Complete Guide
Table of Content
What is a Loan Scam?
How Loan Scams Typically Work
1. Unsolicited Contact
The scammer contacts the victim via SMS, WhatsApp, email, or social media, offering loans without requiring any documentation or collateral.
2. Upfront Fees
Victims are asked to pay “processing fees,” “administrative charges,” or “insurance” before receiving the loan. These fees are often pocketed by the scammer.
3. Stolen Information
The scammer collects personal data such as identification numbers, bank details, or work information to commit identity theft
.
4. Threats and Harassment
Victims may face harassment, threats, or blackmail if they refuse to pay additional amounts.
4 Common Types of Loan Scams in Singapore
Loan scams can take many forms. Below are some of the most prevalent ones reported in Singapore:
1. Illegal Advertising Scams
Licensed moneylenders in Singapore are only allowed to advertise through approved channels, such as their websites, business directories, or in-office signage. If you receive unsolicited messages, emails, or social media ads offering loans, it’s likely a scam.
2. Upfront Payment Scams
Fraudulent lenders claim they need upfront payments for “processing fees” or “insurance” before disbursing a loan. Legitimate licensed moneylenders, such as EMVERTEX CREDIT, do not require upfront payments.
3. Impersonation Scams
Scammers may pose as representatives of reputable licensed moneylenders to trick victims into handing over money or personal information. Always verify a lender’s identity by checking the Ministry of Law’s Registry of Licensed Moneylenders.
4. Phishing Scams
Scammers use fake websites, emails, or messages to trick victims into sharing sensitive personal and banking details. These details are then used for fraudulent activities, such as unauthorized withdrawals.
How to Identify a Loan Scam
Knowing how to spot a scam can protect you from falling victim. Here are the red flags to watch out for:
1. Unlicensed or Unsolicited Contact
Legitimate moneylenders will not send unsolicited messages or cold calls offering loans. Scammers often use generic greetings like “Dear Sir/Madam” instead of your real name.
2. Requests for Upfront Payments
Licensed moneylenders never ask for payments before loan approval or disbursement. Any demand for fees upfront is a sign of a scam.
3. Unrealistic Loan Offers
Be wary of promises such as “instant approval,” “no credit checks,” or “interest-free loans.” Legitimate loans come with clear terms and conditions.
4. Poor Communication
Scam messages often contain spelling and grammatical errors. They may also pressure you to act urgently or threaten you with dire consequences.
5. Unregistered Company or Individual
Verify the lender’s name and license number on the Ministry of Law’s website. If they’re not listed, they’re unlicensed and operating illegally.
How to Report a Loan Scam in Singapore
If you suspect you’ve encountered a loan scam, it’s crucial to report it to the authorities immediately. Here’s how you can take action:
Step 1: Stop All Communication
Cease all contact with the suspected scammer. Do not share any personal information, make payments, or click on suspicious links.
Step 2: Gather Evidence
Save all related messages, emails, screenshots, phone numbers, and payment receipts. This evidence will be helpful for investigations.
Step 3: File a Report with the Police
Submit a report to the Singapore Police Force (SPF) through their official website or visit your nearest police station. You can also file a report online via the SPF e-Services Portal.
Step 4: Report to the Anti-Scam Centre
Contact the Anti-Scam Centre by calling the National Crime Prevention Council’s Anti-Scam Helpline at 1800-722-6688. This hotline provides assistance for scam-related queries and incidents.
Step 5: Notify the Registry of Moneylender
Report the incident to the Registry of Moneylenders, which oversees licensed moneylending activities in Singapore. Visit the Ministry of Law’s website to submit your complaint.
Step 6: Inform Your Bank
If you’ve shared banking information or made payments, contact your bank immediately to freeze your account and prevent unauthorized transactions.
How to Protect Yourself from Loan Scams
Prevention is always better than cure. Follow these tips to safeguard yourself against loan scams in Singapore:
1. Borrow Only from Licensed Moneylenders
Verify the lender’s details on the Ministry of Law’s official Registry of Licensed Moneylenders.
2. Beware of Upfront Payments
Never pay any fees before receiving a loan. Licensed lenders will deduct fees from the disbursed loan amount instead.
3. Avoid Sharing Sensitive Information
Be cautious about sharing your NRIC number, bank account details, or employment information with unknown entities.
4. Check the Loan Agreement:
Licensed moneylenders provide a clear and legally binding loan agreement. Read it carefully before signing.
5. Stay Updated on Scam Trends
Follow the Scam Alert website to stay informed about the latest scams and preventive measures.
Why Choose Emvertex Credit a Safe Loan Experience
As a licensed moneylender in Singapore, Emvertex Credit prioritizes transparency, compliance, and customer safety. Here’s how we ensure a secure and reliable loan experience:
a) Legally Approved Practices: We strictly adhere to the guidelines set by the Ministry of Law.
b) No Unsolicited Contact: We never send unsolicited messages, calls, or advertisements.
c) Transparent Terms: All fees, interest rates, and repayment schedules are clearly outlined in the loan agreement.
d) No Upfront Payments: We never ask for payments before loan disbursement.
e) Quick and Safe Approvals: Receive your approved loan funds within 24 hours through secure channels.
Conclusion
Loan scams are a significant threat, but with the right knowledge and precautions, you can avoid falling victim.
If you suspect a scam, report it immediately to the Singapore Police Force, the Anti-Scam Centre, and the Registry of Moneylenders. Stay vigilant, only borrow from licensed moneylenders, and educate yourself about safe borrowing practices.
For a secure and hassle-free loan experience, consider EMVETREX CREDIT—a licensed moneylender committed to protecting our clients from scams and offering transparent financial solutions.
