Licensed moneylender scams: how to spot one, and where to report it

Short answer. Most fake "licensed moneylenders" ask for money before the loan is approved, borrow a real company's name, and deal only over WhatsApp or social media. Don't pay anything before you receive a loan. Complaints about a licensed company go to KPKT through SISPAA; about an ah long or a scammer, to the police. If you've already transferred money, call your bank or NSRC on 997 straight away.

Signs of a licensed-moneylender scam

1. Asking for payment before the loan

A "deposit", "file-opening fee", "legal fee", "agreement fee" or "CTOS check". KPKT lists only two costs a moneylender may charge a borrower: stamp duty and legal costs connected with the loan (KPKT FAQ, question 8, in Malay). KPKT has also warned borrowers not to pay any deposit or advance money, including on the pretext of a record check (Kosmo, July 2023, in Malay).

2. Ads without the required details

Every moneylender ad must show the licence number, the advertising permit number, the licensed lender's name, address and phone number, and the interest rate (question 14). Advertising without a permit is an offence under Section 11 of the Moneylenders Act 1951 (question 13). A WhatsApp message or Facebook post without these details is a warning sign.

3. Using a real company's name

KPKT has reported scammers using the names of registered community credit companies on social media, WhatsApp and websites. So a name that exists in i-KrediKom isn't enough. Contact the company through the phone number and address listed in i-KrediKom, not the number that contacted you.

4. "No meeting, no documents"

Approval promised without checks, without a written agreement, or with a request to hand over your ATM card.

5. Pressure and threats

Threats if you back out, or invented deadlines. Harassing or threatening a borrower is an offence under Section 29B (question 9), and a licensed moneylender can only recover a debt through the civil courts (question 17).

Check in 3 steps before you deal with anyone

1. Search the company's name or licence number in the i-KrediKom app. See how to check a licensed moneylender.
2. Contact the company through the number listed in i-KrediKom, or KPKT on 03-8000 8000 (question 15).
3. Before transferring money to anyone, check the receiving bank account on PDRM's SemakMule. An account with no record isn't necessarily safe.

Where to report

• A licensed company breaking the law (unlawful charges, harassment, no copy of the agreement): KPKT through SISPAA at kpkt.spab.gov.my.
• An unlicensed lender (ah long) or a scammer: the Royal Malaysia Police, with a report at a police station (question 1).
• Money already transferred to a scammer: your bank's 24-hour hotline or NSRC on 997, immediately, then a police report (NFCC, in Malay).

Have ready: screenshots of the chat and the ad, the phone numbers and social accounts that contacted you, the bank account number and transfer receipts, the name and licence number they claimed, and a copy of any agreement.

If you've already borrowed from an unlicensed lender

A loan contract with an unlicensed moneylender is unenforceable in law (Section 15, question 18). If you're being threatened, make a police report. If the debt has become hard to manage, get advice from AKPK. See also the downsides of licensed moneylender loans, and your protections.

Question numbers on this page refer to KPKT's moneylender FAQ.

FAQ

Can a licensed moneylender ask for payment upfront?

KPKT lists only stamp duty and legal costs connected with the loan as charges a borrower can be asked to pay. A request for a "deposit" or "processing fee" before approval is a warning sign.

I've paid a scammer. Can I get the money back?

Call your bank or NSRC on 997 as soon as possible. Acting fast can help limit the loss, but there's no guarantee the money will be recovered.

Where do I complain about a licensed moneylender?

KPKT, through its Public Complaints Management System (SISPAA) at kpkt.spab.gov.my.

Want to deal with a lender you can check? See our licence & safety page.