Loan scam: Victims told to transfer portion of loan amount but never receive loan

Four people have been arrested by the police for an alleged loan scam that has left several people waiting in vain for their loan.

The police said on Wednesday that over the past few months, they have received a number of reports from the public who faced similar experiences. In most of the cases, the victims received an SMS or pamphlet asking them if they want to take a loan. When they call the listed mobile number, they are asked to transfer a percentage of the loan amount they want. But after the victims transfer the deposit, they do not receive the loan.

The suspects - three men and a woman aged between 17 and 41 - were arrested on Tuesday at Toa Payoh and Clementi Avenue 5.

Investigations against them are ongoing. If convicted, they face up to five years in jail, a fine, or both.