HE took a loan of RM1,000, but only received RM700 and was then forced to pay RM16,800.
This was the fate of a university student who took out a loan online for an investment, but ended up receiving numerous threats.
The victim, who only wanted to be identified as Yap, 19, said he applied for an RM1,000 loan via the Instagram platform, but only received RM700 due to various deductions, which were paid to him in instalments.
Upon settling the loan a few weeks later, he claimed that he was also charged a settlement fee of RM8,000 by a representative of the loan company involved.
"I immediately lodged a report at Setapak police station, but at that time, I felt like I was being followed. After they found out I lodged a police report, they also demanded RM16,800, supposedly as compensation for commercial losses.
"Later, my family received threats in the form of photos edited with blood stains and the words scammer alert, in addition to threats to spray paint and burn the house," he said at a press conference organised by National MCA Deputy Youth Chief, Mike Chong Yew Chuan, today.
Yap claimed that he was also blackmailed by a man for RM3,000 to avoid having his house sprayed with paint, and after discussing with the lender, they were asked to pay RM12,000.
Meanwhile, Chong advised the public not to take out loans with unscrupulous agencies registered to avoid becoming a victim of fraud.
Head of the Federal Territories MCA Legal Bureau, Victor Teoh Woi Loong, said the case involving Yap was of illegal loan sharking and fraud at the same time.
"We view this case seriously and advise parents to remind their children not to take out loans online to avoid becoming a victim of fraud," he said. – June 5, 2026
