Loan sharks embrace digitalisation, use app to offer services

KUALA LUMPUR – Loan sharks or ‘Ah Long’ now develop mobile applications to offer its services and attract people, as well as using the applications to shame their ‘customers’ if they fail to pay on time.

The syndicate’s latest tactic was detected by the police since a year ago.

Through this method, the loan sharks no longer used the technique of splashing paint at their victims’ homes or threatening victims physically to scare their borrowers.

Instead, they embarrassed borrowers through close acquaintances and family.

Federal police Commercial Crime Investigation Department director Datuk Kamarudin Md Din said to lure the people into engaging their services, the syndicates would advertise loan offers through social media platforms like Facebook and Google.

“The victim will be asked to download the loan application which uses various names through the Play Store (for Android users) and App Store (for iPhone users) for the purpose of the loan process.

“Once the application has been downloaded, the victim has to press a button that allows the syndicate to access the location, files, audio records, media, photos, videos and a list of contact phone numbers available on the victim’s mobile phone,” he said.

Kamarudin said the borrowers were then required to fill out details of personal information and upload a picture of the card identification as well as personal documents.

“The syndicate would then credit the amount requested into the victim’s bank account.

“However, if the victim fails to make payments as promised, the syndicate will embarrass the borrower by contacting his friends and family as well as spreading pictures of the victim, branding the victim as a liar,” he told Sinar Harian.

Kamarudin said the police had taken appropriate action and monitored the latest techniques used by the loan sharks to trap their victims.

“From the investigation, a total of 14 cases involving such a modus operandi.

“Until now, police have successfully thwarted 45 syndicates and successfully solved 112 investigation papers from the arrests,” he explained.

He said the police took proactive steps in combating this illegal activity to curb it from continuing to be rampant.

“The police have taken stern action with the launch massive operations massive to prevent loan sharks activities throughout the contingent.

“The public should not borrow from loan sharks.

“Keep it in mind, this syndicate has elements of gangsterism and they are running the business illegally and it is not regulated by law,” he said.

He also reminded the public not to simply download any loan applications within the Play Store or App Store, as this would result in the exposure of personal information and family’s information.

The public is also advised not to give their ATM card and bank password to the moneylenders.

“The interest imposed by loan sharks is too high and unreasonable. Almost all the victims faced problems settling their debts,” he said.

Meanwhile, a trader from Puchong Nahar Tajri, 44 said he realised there was an increased frequency of loan sharks advertisement on his social media timeline recently.

“The elderly and younger people who just started work may be easily trapped due to lack of experience and information about the illegal activities,” he told Sinar Harian on Thursday.

Another trader, Normala Ismail, 40, said that such advertisements were dangerous, especially when encountered by people facing financial difficulties.

“Most small traders need funds. So, if anyone is desperate enough, they may not think straight and get the loan due to its easy application,” she said.

Meanwhile, data analysts from Shah Alam, Tunku Shahrin Iman Tunku Shaifudin, 25, said people need to identify the modus operandi used by the loan sharks syndicate to deceive the victim.

“Not all Malaysians understand the technique used by loan sharks to cheat customers. Plus, these syndicates are hiding behind digital platforms.

“In this case, users need more be wary of any offers advertising loans. If a loan is seen as unreasonable and unfair to borrowers, they should already know it’s a loan shark syndicate,” he said.