Getting a loan might be really helpful when you are looking for money. But it is also important to be alert for loan scams in Singapore that may dig you further into debt. Singapore is the major financial hub, and loan scams are common here. Poor lenders are frequently targeted by these scammers; therefore, it is crucial for people to be aware of the strategies used by scammers these days.
According to the Singapore Police Force, between January and November 2019, at least 1700 cases have been reported, with at least $6.8 million cheated. And all are possible links to unlicensed moneylending.
We can protect ourselves from loan scams by educating ourselves with knowledge and awareness. This blog post acts as your guide and lets you know how to spot and avoid loan scams in Singapore.
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Signs of Loan Scams In Singapore
Here are some signs of loan scams to watch out for in Singapore:
Guarantee loan promises – it may be a reason of concern if a lender makes a loan approval guarantee without first checking your credit score.
Request for upfront payments – licensed money lenders normally do not charge any applicable fee from the loan amount that is granted to you. If a lender requests payment in advance of approving the loan, proceed with care.
High pressure techniques – scammers frequently use high pressure techniques that are choosing a decision right away. They could generate urgency by making limited time offers or employee aggressive sales techniques.
Random Offers – beware of loan offers that appear by text, phone or email without your consent. Getting loan offers without enrolling in any application may indicate fraud.
No physical location – licensed moneylenders have both physical location and contact information, if a lender does not have any information then it might be engaging in scamming.
Lack of documentation – Licensed moneylender will give you loan agreement and repayment schedule and other appropriate papers. It may be a red flag if a lender doesn’t offer such proof.
How to Protect Yourselves From Loan Scams in Singapore
Messages and Advertisements Are Ignored – Expressing interest in a loan offer made by a scammer was one of the most frequent mistakes made by people. They will stop at nothing to get you to accept their offer as soon as they detect your interest. If you receive a message that seems to be from a scammer, block that number immediately. Similarly delete any email you get that you believe to be from a scammer right away.
Check lender’s credibility – A crucial step in preventing loan scams is to confirm the credibility of the lender. Always check the list of licensed moneylenders on Ministry of law Singapore before starting the loan application procedure.
Do not accept any unwanted offers – scammers generally contact you over phone call, email or message. They claim that they provide loans with low interest rates or have flexible terms for repayment. These deals typically look good but in general licensed moneylenders concentrate on advertising their services through established means rather than making these unexpected offers. Beware of such offers, always do your own research before proceeding with these lenders.
Do not share your Information – Loan scammers are able to request personal information from you such as your bank information, SingPass login credentials, NRIC number. By giving this information you expose your data which is used for blackmail or even used illegally without your permission. Don’t give any of this information especially if it is unverified.
Inform the Police – reporting scammers to the police is the best defense against them for both you and other people. Use the police hotline number 1800 255 0000 to report a scammer, by doing this you can prevent financial loss or information that could be used against you. Always make sure you are working with licensed moneylenders.
How to Check Money Lenders are licensed and legal?
- Go to the Singapore Ministry of Law’s official website.
- Scroll down to the section about licensed moneylenders or moneylending.
- The website has a list of licensed moneylenders. Verify whether the moneylender is on the list or not.
- As an alternative, you can get in touch with Singapore’s Registry of Moneylenders to find out if a moneylender has a license. They have the details you require.
- Always verify that the moneylender license is valid and hasn’t expired.
Conclusion
One must maintain awareness to identify and prevent loan scams in Singapore. These scammers frequently target people who are weak and in need of quick cash. One may significantly decrease their risk of becoming a victim of loan scams by being aware of the warning signs and taking the appropriate precautions, such as confirming the credibility of lenders, studying loan terms and conditions, and avoiding upfront money.
Always remember that it’s suggested to carefully assess the situation if an offer appears too good to be true or if you feel under pressure to make decisions quickly. Your financial security is important, so put your safety first at all times and take the appropriate precautions to protect yourself against loan scams.