Loan scam is a type of financial fraud where scammers deceive individuals into believing they can obtain a loan with favorable terms but instead steal their money or personal information. Victims are often lured with promises of quick approval, low interest rates, or loans that don't require credit checks. These scams can result in financial losses and identity theft.

Modus operandi

  • Scammers advertise loans with appealing terms, often targeting individuals with bad credit or those needing of financial help. These offers can be found through social media, online ads, text messages, or unsolicited phone calls.

  • The scammer claims that no credit checks, background checks, or extensive paperwork are needed, making it seem like an easy and quick way to secure a loan.

  • Victims are asked to pay upfront fees, described as "processing fees," "insurance," or "security deposits." The scammers promise that this payment will ensure the loan approval.

  • Scammers often request personal details such as bank account numbers, identification, or financial information, under the pretense of processing the loan. This information may be used for identity theft.
  • After the fees are paid, the scammer either disappears, stops responding, or continues to request additional fees, claiming there are complications in the loan process.
What you should do?
  • Disregard loan offers received online or from unknown sources.
  • Never share your personal information.
  • Avoid money lenders who request upfront fees.
  • Apply for loans only through banks or licensed financial institutions.

If you have been scammed, please inform us immediately at 1300 88 1900 or +603 2613 1900 (Overseas); or call the National Scam Response Centre (NSRC) at 997 from 8:00 am – 8:00 pm daily; or email customercare@bsn.com.my.