ILLEGAL moneylending syndicates are increasingly targeting young people, including underage teenagers, in a troubling trend that has raised concerns over financial exploitation and public safety.
The Malaysian International Humanitarian Organisation (MHO) said such cases are becoming more frequent, with inexperienced youths particularly vulnerable to manipulation by unlicensed lenders.
Its Secretary-General, Datuk Hishamuddin Hashim, highlighted a recent case involving a 17-year-old schoolgirl who became ensnared in loan shark debt amounting to RM20,000.
“This case involves an underage teenager who is still in school and clearly shows how syndicates target desperate young individuals.
“The situation is very serious because the victim does not fully understand the consequences of such loans and ultimately becomes trapped in an unreasonable debt burden,” he said at a press conference.
According to the victim’s uncle, identified only as Chai, the teenager initially borrowed a small sum of about RM500 before being introduced to other lenders who claimed they could help settle her debt.
He said this led to a cycle of repeated borrowing, resulting in overlapping loans that eventually totalled approximately RM7,250.
“Each time she tried to settle the debt, another party would come forward claiming to help, but in reality they were offering new loans.
“In the end, she became trapped in overlapping debts and could not escape,” he said.
Despite having repaid around RM5,325, the victim is still being pressured to pay up to RM20,000.
Chai added that the situation escalated when the victim and her family began receiving threats from the lenders.
“Among the threats received were to cut off my niece’s hand if she failed to pay.
“In addition, the victim’s mother received messages claiming her daughter would be kidnapped if payment was not made,” he said.
A police report was lodged on 29 April, and the case is currently under investigation by the Sepang District Police. - May 1, 2026
