SPF Warns of Loan Scams Whereby Scammers Send Fake Letters from Government or Banks

By
Shawn Ambrose
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When the coronavirus first emerged, it was easy to fish out infections and stop its spread with strict measures.

But then it started evolving, and some mutated strains ended up being more contagious and harder to detect.

The same can be said for scammers these days (except for the contagious part).

In the past, scammers would call you on the phone, claim to be from a charity, and dupe you into giving them money.

Now, however, they’ve evolved and are using much more sophisticated swindles.

New Loan Scam Involving Fake Letters From Banks & Government Agencies Discovered

A new type of loan scam involving fake letters or emails from banks and government agencies has been discovered by the police.

These swindlers first gain the attention of the victim about the purported loans through unsolicited text messages, websites, or advertisements.

Victims who take up this loan offer would then be asked to continue their communication on WhatsApp, where they would submit a “loan application”.

Scammers would ask for the victims’ personal particulars so the loan application could be processed, and then inform them that the loan had been approved.

There was just one hitch – they had to pay an administrative fee in order to get the loan.

Victims of the scam were asked to pay varying amounts for what the scammers said were either collateral, processing, or transfer fees.

If alarm bells are going off in your head, you’re not the only one.

What convinced the victims to hand over their cash were fake letters or emails that they claimed were from banks or government agencies such as the Monetary Authority of Singapore or the State Courts.

These letters specifically stated that administrative payments were required under their regulations before the loan could be disbursed.

The victims only realised they had been swindled when they didn’t receive their loan.

Losses Amounted to Over S$200,000

20 reports were lodged with the police between January and April this year. In total, the victims handed over a total of S$200,000 to the scammers.

In order to prevent more residents from falling prey to the scam, the authorities described what a loan application with licensed moneylenders is actually like:

  1. Firstly, licensed moneylenders are not permitted to solicit for loans through text messages, phone calls, or social media platforms
  2. Loan transactions are also not allowed to be performed fully online
  3. Before a loan can be granted, licensed moneylenders are required to meet the borrower in person at the approved place of business to conduct physical face-to-face identity verification
  4. Licensed moneylenders will never ask an applicant to make payments for the disbursement of the loan, including GST, “admin fees” and “processing fees”.

If you’re ever unsure whether the moneylender you’re dealing with is licensed and legitimate, you can head to the Law Ministry’s website to check the list of licensed moneylenders in Singapore.

You can also watch these videos on the various scams that are going on in Singapore:

Featured Image: Singapore Police Force

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Shawn Ambrose
Email: [email protected]