KUCHING – Members of the public have been urged to exercise caution when responding to loan advertisements on social media after a borrower was allegedly drawn into a series of advance payment demands and threats.
The Sarawak Consumers’ Association (PPS) said the case began when the victim sought to borrow RM3,000 after coming across an advertisement on Facebook promoting what was presented as a licensed loan provider.
According to the association, the offer included interest of about RM200 and a proposed 12-month repayment schedule of approximately RM267 a month. The terms appeared attractive to the victim, who believed the service was legitimate.
During the application process, the victim was asked to complete and sign a loan form and provide personal information, including a copy of an identity card and a photograph.
The association said the victim was subsequently asked to make several payments described as fees or requirements for processing the loan.
These included RM138 for registration and account opening, RM650 for opening a loan account and RM850 for what was described as “Top Up Scoring”. The victim reportedly paid RM1,638 in total but did not receive the requested RM3,000 loan.
Further demands allegedly followed, including another RM950 for “Top Up Scoring”. When the victim said he could no longer afford the payments and sought to cancel the application, he was allegedly asked for RM450 as a cancellation fee.
PPS said the sequence of demands raised concerns over a common advance-fee scam pattern, in which prospective borrowers are asked to make payments before receiving any loan proceeds.
The situation reportedly became more serious when the victim declined to make further payments. PPS said the personal details and documents submitted during the application were allegedly used to pressure and threaten him.
According to the victim’s account, the individuals involved threatened to contact his workplace and family members, including his mother. The victim also alleged that his photographs and personal information were threatened with publication on Facebook alongside claims that he had borrowed money and failed to repay it.
PPS said the victim was also allegedly asked to allow his bank account to be used to receive or transfer funds on behalf of the individuals involved. The association warned that allowing an account to be used in such circumstances could expose an individual to financial and legal risks if the account became involved in suspicious or fraudulent transactions.
The association said the victim was later contacted by another number with another loan offer. Facing financial difficulties, he reportedly borrowed RM500 but was allegedly told to repay RM1,000 within seven days.
Under continued pressure, the victim reportedly borrowed money from relatives to meet the demands and eventually paid RM2,000.
PPS said the individual was then allegedly asked for a further RM4,000, despite having already paid substantially more than the amount initially borrowed.
PPS president Dr Wynson Ong Teck Ping advised consumers not to rely solely on claims such as “low interest”, “licensed company”, “easy to pass” or “quick approval” when assessing online loan advertisements.
He said consumers should regard requests for multiple advance payments as a warning sign, particularly when the promised loan has not been disbursed.
The public was also advised to exercise caution before providing identity documents, photographs, employment details or information about family members to unknown parties.
Ong stressed that people should not hand over or lend their bank accounts to strangers to settle alleged debts or payments. Such arrangements could result in an account being misused and potentially expose the account holder to further complications.
Consumers who believe they have been targeted by a loan scam are advised to preserve relevant evidence, including conversations, telephone numbers, transaction records, bank account details, social media advertisements and threatening messages.
PPS also urged victims to make a police report rather than continuing to make payments because of threats or intimidation.
The association said its hotline, 017-710 9299, is available to provide assistance to affected consumers free of charge.
