Singapore, the country is not exactly cheap to live in. If you are a resident in Singapore and have fallen on hard times and need immediate money, you can easily get money from either the banks of Singapore or the many money lenders in the country. But be sure to double-check whether these money lenders are legitimate or not.
The ministry of the law of Singapore has sent out warning messages to citizens to be extra cautious when they approach a moneylender due to an increase in the scams related to credit. The recent biggest scam was done by a group of criminals in Singapore who reportedly duped victims of 100000 dollars in September last year.
Do Not Underestimate The Creative Abilities Of The Scammers
These scammers can get creative with their ideas to dupe innocent people of their money. They have become extremely technologically advanced and can use several methods to scam victims. You may be well aware of all the scams and take all the precautions and yet end up getting scammed!
The September scam case involved the scammers sending a WhatsApp message to the victims, which contained a pdf file most of the cases, stating all the charges and the 7 percent GST that the borrowers were required to pay. The victims did not question the legitimacy of the money lenders because the messages and the files were sent from the ministry of law. As soon as the individuals downloaded the documents, they were asked to pay up. Even if some of them wanted to cancel the proceedings, they were harassed and told to pay up. So, the next time you receive a WhatsApp message that says the ministry of law, do not blindly download it and pay the advanced charges.
What Can You Do About It?
There is nothing to be done, other than being very cautious when dealing with money lenders. Always opt for licensed money lenders like Crawfort Singapore. Apart from opting for legitimate money lenders, you can ring 1800-722-6688 to always be on known about all the latest scams that are taking place. It is better to be knowledgeable than being ignorant. The government of Singapore has provided yet another telephone number 1800-255-0000 for you to report any such suspicious numbers and messages and help spread general awareness.
How To Know If You Are Dealing With A Shady Money Lender?
There may be several red flags, and you might end up missing them because, during desperate times, many fail to notice the warning signs and end up becoming a victim of fraud. Anyway, here are some of the signs that you should look out for when dealing with money lenders:
- The first thing that you should check if the money lender in Singapore is listed under the ROM’s list of legitimate money lenders. If he is not listed, then you are dealing with someone who operated illegally, and you should avoid him at all costs.
- The illegal moneylender will charge you even before the loan has been processed, and that is a clear red flag. Legitimate moneylenders will never ask you to pay anything before the loan has been disbursed. They might charge you processing fees, but those are all included in the final amount.
- Imagine you need the money and suddenly you get this message on your phone asking if you need any financial help, which is not a coincidence. You are a target of scam in this case, but no legitimate money lender will ever reach out to you out of the blue. If a moneylender keeps harassing you to take a loan, steer clear of them.
- Usually, borrowers can cancel the process before the loan gets disbursed, and the moneylender will not ask him for any cancellation fees or charges. But when you are dealing with a scammer, he will harass you constantly for canceling the transaction and will instead insist that you pay the principal amount because the loan has already been disbursed.
- The moneylender who is operating without a license will not allow you to cancel transactions.
- Usually, when you reach out to a moneylender for a loan, they will send a document or a notification updating you about the transaction. Moneylenders that are not licensed will not send you this second document.
- Be cautious when a moneylender asks you for your bank account number, sing pass as well as NRIC. If he asks you about confidential information, even if you do not need the loan, report his number to the telephone number mentioned above, immediately.
- Licensed moneylenders will not abuse you for faulting one payment. But when you fail to make a payment once, when you are dealing with an unlicensed moneylender, you will be showered with hostility.
- Before signing it agreeing to anything, check the contract. Read all the fine prints. You must read everything that is written in the contract. Be sure to check the r payment conditions and other information like late repayment fees.
- Usually, when you are applying for a loan, the licensed moneylenders will always ask for your credit score. Unless and until you show good payment history, the loan will not be approved. But this is different in case of an unlicensed moneylender. He will not check your credit scores, and he would not care about your payment history. So please, beware. Do not think it is a good deal if he agrees to give you the loan without checking your credit score.
- All licensed moneylenders have physical offices so that borrowers can go to their office and verify their identity. If your moneylender does not have a physical address, chances are he is operating illegally.
- Apart from having a physical address, he should also have a website that is well designed and optimized. Ancient looking websites with no padlock symbol and no SSL encryption is a big red flag!
Keep in mind these points above, and you can be safe from scammers!