Payment loan

Police: Any loan where you pay ‘upfront fee’ first is a scam

KUALA LUMPUR: Any loan that requires the borrower to pay an upfront fee is a scam, police say.

Bukit Aman’s Commercial Crime Investigation Department (CCID) Director, Comm Datuk Mohd Kamarudin Md Din, said loan syndicates trick victims into parting with their money by charging “upfront fees before the so-called loan could be approved.

He said the scammers would come up with various excuses for the upfront fees, to cover the costs of lawyers and insurance, among others.

“In reality, such things are the opposite of the processes of obtaining loans practiced by legitimate financial institutions or approved lenders. All processing fees are included as part of the total loan taken,” he said. he said in a statement.

“We hope the public will be more cautious to avoid falling victim to loan scams,” he added.

Comm Kamarudin said a total of 5,039 loan scam cases were reported in 2019, resulting in losses of RM48 million.

“Cases rose to 5,718 in 2020 with RM62 million in losses. Last year, we recorded 4,784 cases involving losses of RM50 million, while 903 cases have been reported so far this year, resulting in losses of RM8 million,” he said. .

He urged those with information or inquiries about commercial crimes to contact the CCID Scam Response Center on 03-2610 1559/1599.

Meanwhile, on a separate case, a 34-year-old man has been arrested for allegedly tricking a woman out of RM152,500 into a romance scam.

Kuala Lumpur CCID chief, Assistant Comm Mohd Mahidisham Ishak, said the 39-year-old victim filed a report on April 9, claiming the suspect tricked her out of money after promising money. marry.

“The victim got to know the suspect through social media. He promised to marry her but before the marriage could take place the victim had to help him pay various personal debts,” he said.