E-Loans and loan schemes don't exist, victims face threats

MIRI, Oct 14: The victim of online loan fraud in Miri not only faced financial losses but also received threats after failing to meet payment claims by irresponsible parties.

Miri Regional Police Chief, ACP Mohd Farhan Lee Abdullah said that there are two main modes of operation identified, namely loans from unlicensed or e-along money lenders and fake loan schemes which seduce victims through various charges before the loan is given.

"These e-loons are on Facebook, Instagram and other social media. Their offer is very simple, sometimes you just need an ID card without a salary slip", he said when interviewed in an interview with TVS.

In the case of e-along, victims are usually asked to download a specific link or software that allows lenders to access information on their mobile phones, including photos in galleries and family information.

According to him, the victim may only receive a portion of the loan amount after the initial deduction, but still have to repay the loan according to the conditions set by the lender.

When the victim fails to proceed with payment, personal information obtained through mobile phone access is used to intimidate them, including by contacting family members and contacts of the victim.

"When victims are unresponsive and unwilling to pay, threats will start via phone calls and WhatsApp, including using family photos as well as the victim's home address", he said.

Farhan said there were also cases involving more serious threats, including the act of dropping petrol bombs on a house area causing vehicles in front of houses to burn.

Meanwhile, counterfeit loan schemes seduced victims by offering easy loans, before demanding processing fees, contract fees and security charges in stages.

He said that the initial payment which may range from around RM150 to RM200 could increase to thousands of ringgit when a victim is asked to pay an additional fee for the purpose of upgrading his loan eligibility or continuing the application process.

However, the victim ultimately did not receive the loan money as promised and may continue to be required to pay a cancellation fee if he wishes to terminate his application.

"Don't be too quick to believe online loan offers, whether e-along or real loans don't exist. We'd better go to licensed financial institutions and get loans because it's safer", he said. - TVS