Scam Sign: Tempting Offers – Loan Scams

What are the tell-tale signs of a loan scam?

• The offer is via a messaging app or a social media platform
• Lender offers to approve your loan remotely
• Licensed moneylenders can only grant loans physically at their approved places of businesses and not allowed to advertise via social media, messaging apps, or cold calls

How to Stay Safe?

• Ignore
• Use only legitimate institutions
• Get approval in person

Scam Type	Key SCAM SIGNS	Accompanying Advisories
Loan Scams	Received an SMS on loans with very attractive rates. Legit money lenders in SG cannot advertise their services beyond their premises. If you receive a text, or see a digital advert on loan services, it is a confirmed scam.	Check: That you do not use clickable links or QR codes provided by unknown persons to make payments / transfers, as these lead to fake bank websites that phish for your banking credentials Do not Transfer money or send gift cards to unknown persons Never disclose your personal information, internet banking and social media account details, and one-time passwords (OTPs) to anyone Do not let others use your banking or Singpass accounts to receive or transfer money. They are for personal use only Tell: Warn your friends and family about your scam encounter Make a police report if you think you have fallen victim

Six Stages of Loan Scams

1. Advertising
2. The Follow-up
3. The Offer
4. Demanding
5. Threats
6. Realisation 

The 6 Stages of Loan Scam

Discover the techniques behind the scam and red flags to look out for

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1. Advertising

Scammers use online forums and messaging apps to link victims to legitimate looking websites or reach out directly via text messages.

⚠️ Techniques used by scammers:

• Authority:
  Scammers pose as licensed moneylenders with screenshots of legitimate documents.

• Optimism Bias:
  Scammers make use of people’s optimism bias to lie about moving their company online when their company’s fake address is found to be ingenuine.

• Urgency:
  Scammers put limited time offers on their unbeatable interest rates and fees.

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2. The Follow-up

Scammers mimic bank processes by providing a follow-up call after an inquiry is made and use different phone numbers to avoid detection. They also ask for victim’s personal and financial documents to increase legitimacy.

⚠️ Techniques used by scammers:

• Legitimacy:
  Scammers act legitimate by asking for the victim’s legal documentation and using real company logos for their WhatsApp profile pictures.

• Assurance:
  Scammers utilise background noises such as other people discussing loans and credit to assure victims that they are licensed moneylenders.

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3. The Offer

Scammers offer a higher loan amount than what was requested, but will make requests for payments pertaining to a higher loan amount such as increased admin fees.

⚠️ Techniques used by scammers:

• Urgency:
  Scammers provide limited time offers that have interest rates much lower than those in the bank.

• Commitment:
  Scammers pose as licensed money lenders who are committed to making their client’s life better by offering more money to “help” the victims get things done.

• Helpfulness:
  Scammers tell victims that they have bad credit and that they will speak to their “supervisors” to approve better loan amounts.

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4. Demanding

Scammers demand for payments such as admin fees, upfront advanced payment and GST. They also issue legitimate looking invoices by spoofing the MAS logo and business receipts.

⚠️ Techniques used by scammers:

• Urgency:
  Scammers rush the victims to pay by a certain time of the day and provide reasons such as office closure.

• Authority:
  Scammers spoof MAS forms and invoices to avoid victim’s suspicion.

• Payments:
  They may make a victim pay multiple times by claiming that previous bank transfers were made to the wrong account.

• Emotions:
  Victims are aware of the scam but do not believe it will happen to them. Scammers take advantage of this to pressure victims into paying more, or by assuring them that the loan will be processed soon.

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5. Threats

If a victim refuses to continue paying, scammers may turn to threats of violence or harassment via phone calls or WhatsApp messages.

Threats could be in the form of:

• Videos of houses being damaged or vandalised

• Videos of people being hurt

• Letting your friends and family know of your illegal loan request

• Harassing you at your job

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6. Realisation

Victims realised they have been scammed through:

• Never receiving their loan

• Being threatened by scammers

Victims usually freeze their bank accounts thereafter to stop further transactions and prevent their account from being used illegally before informing the police.

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