Obtaining a money lender loan in Singapore can be suitable whenever you face an unexpected financial hitch.
However, it’s crucial to be aware that alongside the many licensed money lenders, there is a growing number of loan scammers. These fraudulent individuals take advantage of your vulnerability, potentially leaving you in a worse financial situation than when you began.
So, how do you protect yourself? This post will discuss how to protect yourself from loan scams in Singapore.
What is a Money Lender Loan Scam?
Loan scams are fraudulent methods used by unregulated money lenders to convince you to pay advance fees or share private details in the hope of an advance under false loan representations.
Notably, at first, the thieves will present themselves as legitimate money lenders with valid methods to try and win your confidence. Then, they will begin calling you on the phone, texting you, or visiting you on social networking sites with too-good-to-be-true offers. They will entice you with offers such as providing loan approval at once, a credit-free loan, or very low interest rates.
Throughout the process, they will give you that false sense of urgency and then entice you to act impulsively. But, once they have their paws on you, they will keep demanding advance payments in processing, administration, and other fees.
They will also demand your personal information, including your NRIC number, login credentials, or bank details. In the worst-case scenario, the scammer is long gone if you bow to their tricks and pay or provide them with your information.
Red Flags to Watch Out For
Protection starts with being aware of the red flags. Some of the usual red flags include:
- Cold calls: Legitimate money lenders do not cold-call or text you out of the blue. If you have never called them, be suspicious.
- Advance fee charges: Singapore-licensed money lenders should not charge any fee before lending.
- No office address: Spammers do their business online or using numbers that cannot be traced. A genuine money lender will have an office that doesn’t disappear overnight.
- Pressure sales: Something is wrong if a person pressures you to make a decision.
How to Protect Yourself
Below are ways on how you can steer clear of loan scams:
- Look for the Money Lender’s License
Empower yourself by verifying that the Ministry of Law has licensed the money lender. Check the list of licensed money lenders on the Ministry website. If the lender is not listed here, you have the power to not approach them.
- Never Provide Sensitive Information
Your personal information, such as ID and OTP, should be confidential. Please do not share them with anyone, not even via phone or SMS.
- Never Pay in Advance
Remember that Singapore-licensed money lenders cannot collect any fees before releasing a loan. If someone asks for money first, it is a scam.
- Trust Your Instinct
Remember, scammers are skilled at exploiting your desperation, but taking a moment to think things through can prevent you from falling into their trap. If something doesn’t feel right, trust your instincts. You have the power to protect yourself.
What to Do If You’ve Been Scammed
If you think you have been scammed, don’t hesitate to report it to the police.
Importantly, change your passwords, especially those for your online banking accounts, and monitor your accounts closely for unusual transactions.
Final Thoughts
If you must borrow a loan, always ensure you borrow from the best licensed money lender. A regulated money lender understands that your hard-earned money is worth protecting.
At JR Credit, we assist with your financial problems responsibly and securely. Please don’t hesitate to contact us anytime you are in need.