The Singapore Police Force (SPF) has issued a stark warning to the public about a surge in loan-related scams that have already cost victims at least S$2.4 million in just five months. From January to May 2025, no fewer than 375 cases were reported, prompting an urgent advisory for Singaporeans to stay alert when encountering online loan offers.
These fraudulent schemes often begin with victims stumbling upon promotional content on platforms like TikTok, Facebook, or even through SMS and WhatsApp messages offering fast cash. While these may appear legitimate at first glance, they are in fact carefully crafted scams targeting financially vulnerable individuals.
Once contact is made, scammers will request “upfront fees” in the form of account clearance charges, legal fees, or insurance costs, and instruct victims to make payments via PayNow, iBanking, ATM transfers, or even in-person cash handovers. The promised loans never materialise.
Scammers Impersonate Licensed Moneylenders
In a more sophisticated twist, scammers have started claiming to be “branches” or “partners” of legitimate licensed moneylenders. Victims are sometimes guided to take out real loans from actual legal lenders, only to be misled into forwarding the funds directly to scammers under false pretences.
In other cases, victims are instructed to purchase iPhones or other smartphones registered under their own name and surrender them to intermediaries—purportedly to secure approval of their loan applications. These devices are then likely sold or misused in criminal activities.
Authorities say victims typically only realise they have been cheated when loan disbursements never arrive, and contact with the scammer is cut off.
Public Urged to Stay Informed and Protect Themselves
The Police emphasised that licensed moneylenders in Singapore are tightly regulated. They are not allowed to promote their services via text messages, phone calls, or social media platforms. Moreover, all loans must be processed in person, at approved business premises, and never through a fully online transaction.
Members of the public are urged to use tools like the ScamShield app, enable two-factor authentication (2FA) for banking, and check the Registry of Moneylenders to verify any lender’s legitimacy. Importantly, loan applicants should never pay upfront fees for loan approvals, nor should they give away personal SIM cards, phones, or banking credentials to third parties.
If in doubt, always contact the ScamShield helpline at 1799 to verify suspicious messages or calls. To learn more about ongoing scam trends, visit the official website at www.scamshield.gov.sg.