Malaysia

Loan fraud losses spike up to over RM8 mil as of April: Bukit Aman

A total of 4,784 cases involving RM50.6 mil last year, says CCID director

Updated 4 years ago · Published on 15 Apr 2022 10:15PM

Loan fraud losses spike up to over RM8 mil as of April: Bukit Aman
Datuk Mohd Kamarudin Md Din (right) says that any loan scheme that asks for an advance payment is a scam and members of the public are advised to be careful and not fall for the tricks of the loan fraud syndicates. – Bernama pic, April 15, 2022

KUALA LUMPUR – A total of 903 cases of non-existent loan fraud were reported as of April this year with losses over RM8 million.

Bukit Aman Commercial Crime Investigation Department director Datuk Mohd Kamarudin Md Din said that based on police statistics, loan fraud continued to record a high number of cases every year.

“In 2019, a total of 5,039 cases were reported with losses of RM48.42 million. Cases continued to increase to 5,718 cases with losses of RM62.39 million in 2020.

“In 2021, a total of 4,784 cases were reported involving losses of RM50.6 million,” he said in a statement today.

He added that an analysis by police found that the only way for the syndicate to get money from the victim was through an advance payment that was supposed to be paid by the victim before the loan was approved.

“Various tricks were used by the syndicate to obtain the advance payment, including legal fees, agreement fees, insurance fees, credit increase fees, CCRIS/CTOS fees, IRB fees, account activation fees and so on,” he said.

Kamarudin said this was unlike the money lending method practised by banking institutions or licensed money lending companies, in which any fees payable would be included as part of the loan amount.

“Therefore, any loan scheme that asks for an advance payment is a scam and members of the public are advised to be careful and not fall for the tricks of the loan fraud syndicates,” he said.

The public can refer to the CCD Scam Response Centre at 03-2610-1559 or 03-2610-1599 for any advice or concerns related to commercial crime. – Bernama, April 15, 2022

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