LOAN sharks in Malaysia have begun using disturbing psychological tactics — including the circulation of fake funeral portraits of debtors — in an effort to coerce repayments, the Malaysian Chinese Association (MCA) has revealed.
MCA Public Services and Complaints Department head Datuk Seri Michael Chong cited recent reports which suggest that illegal moneylenders are turning away from physical threats in favour of more insidious methods designed to shame and frighten their victims.
“These edited images are uploaded on social media to instil fear and shame not just in the victims, but also their families,” the New Straits Times reported Chong telling a press conference at Wisma MCA on Tuesday.
In one such case, a 40-year-old businessman from Klang, identified only as Tan, said he received an image of himself digitally inserted into a mock funeral portrait, complete with joss sticks and a ceremonial altar.
“The photo was sent by the lender, known as Han, supposedly to ‘remind’ me of what happens when you don’t pay up,” Tan said. “But I had already repaid RM6,000 of the RM10,000 borrowed.”
Tan said the RM10,000 loan was part of a larger RM50,000 he had taken out in February to support his business, which he claims was repaid in full by March. Nevertheless, threats began before the loan was completely settled.
“The image was sent on 26 June and then deleted a few hours later,” he added.
MCA Public Complaints Bureau deputy head Ivan Tan, who is also a practising lawyer, said this emerging form of harassment highlights a shift in the loan sharks’ modus operandi.
“They likely have some legal awareness and believe that these symbolic threats do not fall under the category of serious criminal intimidation,” he explained.
He warned that such tactics exploit gaps in the law, making enforcement difficult for the authorities.
“We urge the government to review existing legal provisions and consider tougher penalties for psychological intimidation of this nature,” he said, noting that the impact on victims and their families can be severe.
The MCA is continuing to document complaints and has vowed to press for stronger regulatory measures to curb such practices. - July 1, 2025
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