SINGAPORE: The Singapore Police Force has issued a warning about a surge in loan scams that has left victims facing losses of at least S$2.4 million between January and May 2025.
In a statement released on 16 July, the police disclosed that there were at least 375 cases reported during this period.
The statement urged members of the public to exercise caution when approached with offers of fast cash loans.
According to the Police, this scam variant typically begins with short video clips or advertisements on social media platforms such as TikTok and Facebook.
In some instances, victims come across such content through their own online searches.
Unsolicited text messages via SMS or WhatsApp are also commonly used by scammers to reach potential victims.
When victims respond, believing they are securing a legitimate loan, they are asked to transfer money in advance.
These transfers are often disguised as payments for “account clearance”, “lawyer fees”, or “insurance fees”.
Funds are usually transferred through internet banking, ATM deposits, PayNow, or even handed over in person.
In several reported cases, scammers claim to be a branch or business partner of licensed moneylenders in Singapore.
They instruct victims to obtain a genuine loan from a legitimate licensed moneylender.
Once the loan is disbursed, victims are told to transfer the sum to the scammer, believing it is necessary for processing.
Another tactic involves scammers directing victims to buy mobile phones, such as iPhones, with SIM cards registered in their names.
Victims are then asked to pass the devices to a money mule, falsely assuring them that the loan application will only proceed if this condition is met.
Victims often realise they have been scammed only when the promised loan never materialises.
Police remind public that licensed moneylenders may only advertise through approved official channels
The police has reminded the public that licensed moneylenders in Singapore are not permitted to advertise except through approved channels.
These include business directories, official websites, or within the premises of the approved place of business.
They are not allowed to solicit borrowers via text messages, phone calls, or social media.
In addition, a licensed moneylender must conduct face-to-face verification at its approved place of business before granting any loan.
Fully online transactions for loan disbursement are strictly prohibited.
Furthermore, licensed moneylenders cannot ask for upfront payments for GST, administrative or processing fees.
Only an administrative fee may be deducted from the principal loan amount upon disbursement.
The police also highlighted the offence of misusing SIM cards.
Reselling or giving SIM cards to others, or helping others register them, without valid reasons, is illegal.
To protect against scams, the public is advised to use tools such as the ScamShield App and to enable two-factor authentication or multi-factor security for banking.
They should verify any lender’s licence status through the Registry of Moneylenders website.
People should avoid handing over cash, phones, or sensitive personal details to strangers to secure loans.
Suspicious messages, phone numbers, or websites should be verified through ScamShield.
Authorities urge individuals to report scam advertisements to social media and e-commerce platforms.
The police emphasised that fighting scams is a collective responsibility.
The community is encouraged to ACT: Add security measures, Check legitimacy, and Tell authorities, family, and friends about scams.
For more information, the public can visit www.scamshield.gov.sg or contact the 24/7 ScamShield Helpline at 1799.
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