Borrowing money becomes a necessity when the need arises, providing valuable financial assistance. However, it’s crucial to be aware that money scams are increasingly prevalent in Singapore. It is essential to stay vigilant and check for Singapore loan scams to avoid falling victim to fraudulent schemes that could lead to further debt. These scams often target vulnerable borrowers, emphasizing the importance of being informed about the tactics employed by con artists in today’s landscape.
The Singapore Police Force reported that 1700 incidents involving at least $6.8 million in fraud were recorded between January and November 2019. All of them could have connections to illicit moneylending. Borrowers can protect themselves from loan scams by having proper knowledge and awareness. This blog post will guide you on identifying and avoiding loan scams in Singapore!
Signs of Loan Scams You Should Know
- Guarantee Loan Promises: If a lender guarantees loan approval without first examining your credit report, this could be a cause for concern.
- Requests for Upfront Payments: Generally, authorised money lenders do not ask for any fees from you before the loan application. Take caution if a lender asks for payment before authorising the loan.
- High-Pressure Tactics: Con artists use high-pressure tactics that require instant decision-making. They might create a sense of urgency by using aggressive sales tactics or time-limited offers.
- Random Offers: Watch out for loan offers that show up via email, message, facebook or instagram. Receiving loan offers without completing an application could be a sign of fraud.
- No Physical Location: Licenced moneylenders must have a physical office and contact details; if a lender is not providing any of these, it may be concerning.
- Lack of Paperwork: A reputable moneylender will provide you with the loan agreement, repayment plan, and other necessary paperwork. If a lender cannot provide such documentation, that could be a warning sign.
How to Protect Yourselves from Loan Scams?
Ignore Advertisements and Messages
One of the most common blunders people made was to express interest in a loan offer made by a scammer. As soon as they sense your interest, they will do everything it takes to persuade you to accept their offer. Block that number right away if you receive a message that appears to be from a fraudster. In a similar vein, immediately delete any email you get that you think might be from a fraudster.
Check the Reputation of the Lender
Verifying the legitimacy of the lender is an essential first step in avoiding loan scams. Before beginning the loan application process, always review the Ministry of Law Singapore’s list of authorised moneylenders.
Don’t Disclose Your Information
Scammers may ask for personal details, like your NRIC number, bank account details, and SingPass login credentials. By providing this information, you put your data at risk of being used illegally without your consent or for extortion. Give none of this information, especially if it’s not backed up by any sources.
Notify the Police
The best defence against con artists for you and others is to report them to the police. Report a fraudster by calling the police hotline at 1800 255 0000. By doing this, you can avoid losing money or having information exploited against you. Make sure you are dealing with authorised moneylenders at all times.
Don’t Accept any Unwanted Offers
Scammers contact you by phone, email, or messaging. They say they offer loans with flexible payback terms or cheap interest rates. These deals usually appear attractive, but licenced moneylenders focus more on promoting their services through accepted channels than on making impromptu offers. Avoid accepting such offers and always conduct your own research before working with these lenders.
Check if the Money Lenders are Licensed
Legal money lender in Singapore or not, you have to follow some steps:- Visit the official website of the Ministry of Law in Singapore.
- Navigate to the section regarding licenced moneylenders.
- There is a list of authorised moneylenders on the website. Check if the moneylender is included on the list.
- Also, you can check if a moneylender is licenced by contacting Singapore’s Registry of Moneylenders. They possess the information you need.
- Make sure the moneylender’s licence is up to date and valid at all times.
Conclusion
You have to maintain awareness to recognise and avoid loan scams in Singapore. People who need money easily become the targets of these scammers. But you can reduce the chance of loan scams by being aware of the warning signs and taking the appropriate precautions.
Choose Best Licensed Moneylender if you are looking to borrow money from a licensed moneylender in Singapore. When making loans, we put responsible money lending first to safeguard our clients, implementing accurate credit and background checks for a seamless and secure process. You can connect with our team to know more about loan details!
