The Police would like to alert members of the public to remain vigilant against loan scams. Between January and May 2025, there were at least 375 cases reported, with total losses amounting to at least $2.4 million.
In this scam variant, victims would come across short video clips or advertisements promoting fast cash loans while browsing social media platforms such as TikTok and Facebook, or through their own internet searches. In some cases, victims would receive unsolicited text messaged through SMS or WhatsApp, offering loans. Victims who replied with the intention to take up loans would be asked to transfer money purportedly for purposes such as payments for “account clearance”, “lawyer fees” or “insurance fees”. Victims would then be instructed to transfer money through methods such as iBanking transfers, ATM cash deposits, PayNow, or hand over cash in person.
In some cases, scammers would identify themselves as a “branch” or “business partner” of legitimate licensed moneylenders. Victims would then be guided to take a loan from these licensed moneylenders, and instructed to transfer the money obtained from the said loan to the scammer. In other cases, victims would be instructed to purchase mobile phones (e.g. iPhones) with SIM cards registered under their own name, before handing the phones to a mule for their loan request to be accepted.
Victims would only realise that they had been scammed when the scammers failed to disburse the loan as promised.
Members of the public are reminded of the following:
Licensed moneylenders
- Licensed moneylenders are not allowed to advertise their services except through business or consumer directories (in print or online), internet websites belonging to the licensed moneylenders, and those placed within the approved place of business.
- Licensed moneylenders are not allowed to solicit loans via text messages, phone calls or social media platforms.
- Licensed moneylenders are required to meet the borrower in person at the approved place of business to conduct physical face-to-face verification of the borrower’s identity before granting any loan. A loan transaction performed fully online is not allowed.
- Licensed moneylenders will not ask a loan applicant to make any payment (such as for GST, “admin fee”, “processing fee”, or any other fee) before the disbursement of a loan or to secure the disbursement of a loan. Licensed moneylenders are only allowed to deduct an administrative fee from the loan principal that is disbursed to the borrower.
Misuse of SIM cards
- It is an offence for individuals to misuse their eSIM/SIM card via reselling, allowing others to use their SIM cards, helping other individuals to register or holding multiple SIM cards without a legitimate reason. For more information on misuse of SIM cards, visit Misuse of SIM Card Offences.
Members of the public are also advised to adopt the following precautionary measures:
- ADD - ScamShield App and set security features (e.g., enable two-factor (2FA) or multifactor authentication for bank accounts and set transaction limits on internet banking transactions. Add a Money Lock feature to further secure savings in bank accounts from scams).
- CHECK – the list of licensed moneylenders on the Registry of Moneylenders website. Do not transfer money, handover cash or items (i.e. phones with active phone lines) to unknown persons to secure loans. Do not purchase phone lines on behalf of others, and/or let others use your banking or Singpass accounts to receive or transfer money.
Call and check with the 24/7 ScamShield Helpline at 1799 if you are unsure if something is a scam. You can also check the legitimacy of suspicious phone numbers, messages and website links through the ScamShield App.
- TELL - Authorities, family, and friends about scams. Report any fraudulent advertisements to the social media and e-commerce platforms.
7 For more information on scams, members of the public can visit www.scamshield.gov.sg. Fighting scams is a community effort. Together, we can ACT Against Scams to safeguard our community!
SINGAPORE POLICE FORCE
16 July 2025 @ 5:25 PM