Non-Existent Loan Scam

Modified on Fri, 08 Mar 2024 at 04:36 PM

When you are facing an immediate financial crisis, the urge to seek a fast solution such as taking a loan might make you more vulnerable to scams - falling victim to non-existent loan scams.

How The Non-Existent Loan Scam Works

  • The scammers advertise attractive loan offers to lure victims through social media, phone call, SMS or other messaging apps.
  • To gain trust from victims, the scammers:
    • Use forged ‘employee ID’ that claim to be genuine financial advisor, to convince the victim to believe they’re real.
    • Ask to meet the victim near the bank, trying to appear as legitimate bank employees.
    • Present a fake SSM certificate.
  • Subsequently, they will request victim to send the necessary documents for the financing process, as a chance to trick victims into revealing their personal / banking information.
  • The syndicates will then insist victim to make upfront payments for agreement fees, legal fees, insurance, account activation, tax and other charges.
  • The scammers might deposit fake cheques in the victim’s account, making it seem like the loan is approved and urging them to pay fees. These cheques, however, are not valid and will bounce.

How To Spot Non-Existent Loan Scam

  • Online advertisement/SMS or cold calling offering loan offers with low interest rates and hassle-free approval.
  • An upfront fee is needed before loan application.
  • Pressure to make quick decisions.
  • A lender who is not interested in your credit history.
  • Suspicious request for personal information. At times, the scammer's aim is not to take your money but to steal your identity for fraudulent purposes.

Things to keep in mind:

  • Be wary of loan offers that sound too good to be true.
  • Avoid clicking on suspicious links sent through unsolicited SMS or messaging services.
  • Make sure the loan is taken from a licensed moneylender company. 
  • Check the license or company name with the Ministry of Local Government Development (Kementerian Pembangunan dan Kerajaan Tempatan).
  • Avoid using third-party agents for loan applications.
  • Refrain from sharing sensitive information with individuals or companies claiming to be third-party representatives from a financial institution.

To report this issue, please get in touch with us.

Rest assured that CelcomDigi is actively taking measures to ensure our customers do not fall prey to such scams.

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