Non-existent Loan: 109 syndicate members detained

KUALA LUMPUR: A total of 109 members of syndicates offering non-existent loans involving about RM43 million losses have been detained from early this year until August through Op Seagul conducted nationwide.

Bukit Aman Commercial Crime Investigation Department director Datuk Zainuddin Yaacob said all the suspects were detained in 13 operations to curb non-existent loan frauds that were becoming rampant during the implementation of the Movement Control Order following the spread of COVID-19.

“Of the total nabbed, 58 have been charged in court involving 28 fraud cases while 51 are still being investigated,” he told Bernama recently.

Zainuddin said investigations were being carried out under Section 120B and Section 420 of the Penal Code which provide for a jail term of up to 10 years and a fine and whipping, upon conviction.

He said police were intensifying efforts to curb the fraudulent syndicates.

Zainuddin said the modus operandi undertaken by the syndicates was to disguise as a loan shark and advertise their services on social media sites including Facebook, Twitter, WeChat and WhatsApp to lure their victims.

“They will also offer a lower amount of interest,” he said.

As such, he said advised the public not to be easily swayed by such online offers and only get loans from legitimate or licensed financial institutions to avoid becoming victims of such syndicates.

-- BERNAMA