Everyday we hear various scam cases related to personal loans happening through social media. This worrying issue may become worse as these online scammers are incredibly clever, using tricky tactics to deceive people. Currently, there is an existing trend of online scammers pretending to be a legal money lender agent, which causes a lot of negligent people to be deceived.
There have been irresponsible parties pretending to be Direct Lending and offering pre-approved loan. These scammers are still actively on the loose. Lately, we have received numerous calls from our customers and the public calling to check and clarify on why they received such suspicious calls or messages.
Please note that Direct Lending is an online personal loan platform to enable borrowers to find, apply and receive financing most suitable to them. We will never cold call you and neither will we ask for any money from you at any time. OUR SERVICE IS 100% FREE!
Tactics Used By Loan Scammers
In this article, we will shed light on the tactics used, how to be safe from these scams and ways to get safe and easy financing from Direct Lending. Be alert! The scammers contacted the customers via the following ways;
1. WhatsApp Group
Many of our customers have been dragged into WhatsApp group chats. For example in the image below, the scammer shared details about the personal loans and tried to convince the customers with unrealistically interesting deals. A customer sent us this screenshot of the WhatsApp group mentioned.
Many are victims of this irresponsible act. From the email screenshot below, it says that there are hundreds of contacts in that WhatsApp group. And that means there might be even more WhatsApp groups created! This information leak might be triggered by the recent case of stolen data from mobile operators.
The scammer even goes to the extent by creating a fake loan agreement with the customer’s full name and IC number. However, as you can see in the screenshot below the scammer included a KPKT license number under our company name. We would like to emphasise that Direct Lending is an online platform; not a financier! We only provide free services; but we do not disburse loans.
Well, just look at the amount of effort this scammer puts into. He even created a digital name card to make things seems more legit. And by the way there is no one by the name of Steven/Kelvin/Fatihah/Liya working at Direct Lending! These are the names of the scammers that our customer informed us about.
Another tip that we can provide is that most of the scammers use email addresses with @gmail/yahoo/hotmail, etc. An example of how a legit email address from us would look like is email@example.com. Usually the email is followed by the company’s name.
2. Cold Call
Many customers received cold calls from the scammer asking if they are interested to take up a loan. As usual, the scammer would picture a wonderful storyline to explain how easy the loan processes are and how cheap and affordable the loan is. Then, the scammer would usually continue to follow up with the customer by sending them WhatsApp messages.
Besides WhatsApp messages and phone calls, the scammer also communicates through voice messages. The video below is the recording of the scammer trying to fool and trick our customer with unrealistic deals. Luckily our customer felt that it was suspicious and decided to forward all the messages and check with us.
How to Differentiate Between Scammers and Direct Lending
It is always better to be safe than sorry. Sometimes we may be too hasty in making decisions when money is involved. Hence, be sure to look out for suspicious and shady promotion before you sign on any loan agreement. Let’s look at some core differences when you apply for financing with scammers VS Direct Lending.
1. Request for Upfront Fees
A lot of these loan sharks will ask you to pay a deposit fee upon applying for a loan. On top of that they will impose ridiculous charges such as credit improvement charge, bank account activation charge or processing charge. If any of the financiers you’re dealing with asked you to pay for any upfront fees before receiving the loan, it’s a major red flag.
In contrast, Direct Lending DOES NOT ask for any upfront fees, nor will we take your debit card and personal online banking details. We follow the legitimate typical procedure to deduct fees from the loan amount that you applied. Direct Lending ensures a legitimate and transparent borrowing experience with no service fee.
2. Unrealistic promises
You may have come across absurd promotions for a loan on social media such as, ‘100% loan success rate’ or ‘0% interest’. These are some bait used to attract people, and later trick them to sign for huge loan amounts way above their means. Remember, if an offer seems too good to be true, it probably is. Be skeptical of promises that deviate significantly from standard industry practices.
Direct Lending however will help you find the most suitable financing option, while still following the standard financing rate. Although we may not promise a loan with 0% interest rate (as it is impossible), we can get you the lowest interest or profit rate that is suitable for your financing needs. Rest assured because Direct Lending only offers REALISTIC financing for you.
3. Pressure tactics
If you ever contact a money lender agent to request for loans and they urge you to make a decision within 24 hours, please be careful. Most of these scammers want to take advantage of their customers’ lack of awareness. Hence, they will pressure you to proceed with the loan arrangement to ensure you sign before making any research.
On the other hand, legitimate lenders such as Direct Lending allow borrowers time to carefully consider and understand the terms of the loan. We will lay down all the financing options that are within your eligibility and address any concern regarding the financing plan offer. Direct Lending is here to ASSIST, not to force.
4. Unsecured websites
We should always check the website or physical office address (if any) before dealing with any financier. Always check the website’s security. Legitimate lenders use secure websites (https://) to protect your personal information. Scammers often neglect this crucial security measure. Moreover, online scammers or loan sharks usually only use social media to approach customers. This ‘company’ may have little to no legal information that can be traced.
In contrast, Direct Lending is a legitimate financier platform and is licensed under KPKT. You can find our official website, social media as well as media coverage on our service. Currently, we have over 2,500 5 stars reviews across Google and Facebook from our customers sharing positive experiences with Direct Lending. You can see this video to know more about the service offered to our satisfied customer.
Steps To Apply Loan Through Direct Lending
Applying a personal loan has never been this easy and convenient. Check your eligibility through our platform and we will select the best personal loan that best suit your financing needs. Our dedicated experienced consultant will then be in contact and assist you with your personal loan application from A-Z.
A fast and easy sign up process in 3 simple steps:
Step 1: Fill up our online application form and select the lender you would like to submit application
Click ‘Check Your Rate’ and tell us what you need. Just fill up our simple online form with your relevant personal details and tell us how much and for how long you would like to borrow.
Step 2: Contact by the lender for credit check and verification
Your selected lender will contact you through email or call for more verification if you meet the loan eligibility.
Step 3: Submit required documents and sign agreements
Once the verification process is done, you can submit the required documents ie., NRIC, latest 3 months payslips and bank statements, latest EPF or tax declaration form and utility bill (like electricity, water bill & etc) before proceed to lender office to sign agreements.
There are many hungry scammers out there waiting for the right opportunity to fool you. As a consumer, it is very important to always remember NOT TO trust unrealistic deals. Good things don’t come easy. Before getting a personal loan, make sure you do some research and educate yourself first. Try checking if the loan that you are getting has any warning signs and also it is important to know the basic differences between a loan shark and licensed moneylender. At the end of the day, the person who will make the final call is yourself.
This article is prepared by Direct Lending, an online personal lending platform with the mission to provide simple, safe and affordable financing to all hardworking adults. We help borrowers to find, apply and receive financing that most suit them. Our service is 100% free.
(This article was originally published on 12th December 2019 and was updated 7th December 2023).