Loan Scams in Singapore: Spot the Traps Before They Spot You

In the first half of 2025 alone, Singaporeans lost over S$456 million to scams of all types

Loan scams are evolving, and they’re getting smarter. In Singapore, scam messages promising “instant approval” and “low-interest loans” are still flooding WhatsApp, SMS, Telegram, and even Facebook ads. The issue? Scammers now mimic licensed moneylenders so convincingly — using real company names, fake websites, and doctored approval letters — that many borrowers don’t realise they’re being scammed until money is already gone.

In the first half of 2025 alone, Singaporeans lost over S$456 million to scams of all types — and loan scams remain one of the most persistent. The first line of defense is awareness. Understanding how real licensed moneylenders operate — and how scammers don’t — is your strongest protection.

If you’ve ever received messages like:

“Hi, we are Licensed Moneylender. Your loan is approved! Please WhatsApp us for fast processing.”

Chances are, it was a scam.

This guide will help you spot the red flags, check if a moneylender is legit, understand how scams operate, and know exactly what to do if you’ve been targeted.

Key Takeaways:

• Loan scams in Singapore commonly involve WhatsApp, SMS, Telegram, Facebook ads, or personal mobile numbers posing as licensed moneylenders.

• Licensed moneylenders cannot approve loans or request payments over SMS or WhatsApp, and they only use landline numbers, never numbers starting with 8 or 9.

• Upfront fees like insurance deposits, GST payments, or “collateral payments” are illegal and strong signs of a scam.

• All licensed moneylenders must verify borrowers in person at a physical office and appear on MinLaw’s official Registry.

• Never share your NRIC, Singpass, bank details, or OTPs with unknown senders claiming to offer loans.

• If you suspect a scam, stop engaging and report via the Police Hotline, ScamShield app, or I-Witness platform.

Loan Scams in Singapore: Why They’re Getting More Convincing

Scammers today don’t just send random text messages, they build fake websites, impersonate real brands, and even use stolen business logos to make their offers look legitimate.

Some scams involve weeks of communication, fake approvals, and customised loan “contracts”. Victims sometimes only realise after they've transferred thousands in “fees”.

Common platforms used:

• WhatsApp / SMS

• Telegram / Facebook Messenger / TikTok DMs

• Fake Google Ads and fake corporate websites

• Personal mobile numbers starting with 8 or 9

Remember:

Licensed moneylenders are legally prohibited from offering loans or collecting payments via personal messaging apps.

IMPORTANT ALERT: Impersonation Scams Using Real Company Names

Some scams directly impersonate legitimate lenders like 1133 Moneylenders, CPF, banks, or even government agencies.

They might show:

• Facebook pages using real logos

• Paid Google ads that redirect to fake sites

• WhatsApp messages claiming “your loan is approved”

• Fake “staff” sending pictures of ID cards or license certificates

  
  

Victims often get tricked because these setups appear professional.

How to protect yourself:

• Always call the official number (e.g., 1133 Moneylenders: 6556 1133)

• Verify against MinLaw’s Registry of Licensed Moneylenders

• Never transfer insurance, security deposits, or GST before a loan is disbursed

• No legitimate moneylender will ever ask for fees upfront

Some scams directly impersonate legitimate lenders like 1133 Moneylenders, CPF, banks, or even government agencies.

Red Flags That Instantly Tell You It’s a Scam

Suspicious Sign	Why It’s a Scam
Loan offer via WhatsApp, SMS, Instagram, Telegram	Licensed moneylenders are not allowed to advertise via personal messaging
Contact number starts with 8 or 9 (mobile)	Real moneylenders must use registered office landlines (starting with 6)
Asks for upfront payment: deposit, GST, processing, insurance	Illegal. No licensed lender requests pre-payment for loans
Claims “full online approval” without visiting an office	All legal loans in Singapore require in-person verification
Urgent pressure tactics — “Pay now to release funds!”	Scammers use urgency to force fast decisions

Real Scam Cases in Singapore

Case 1: Fake Website & “Refundable Deposit” Scam — Loss: $2,500 Victim applied via a website that looked legitimate. WhatsApp follow-ups came with “approval letters,” and a “refundable security deposit” was required before loan release. No loan was disbursed.

Case 2: Facebook Ad to WhatsApp — Loss: $11,000

A professional-looking ad led to repeated “processing fees” and “tax clearances.” Each payment looked like progress toward approval — until the scammer disappeared.

Case 3: Long-Term Grooming — Loss: Over $20,000

The scammer maintained contact over weeks, sending fake contracts, stamp duty letters, and loan documents. Victim paid “verification and handling fees” multiple times.

Scams aren’t always one-time tricks — many are carefully staged to look authentic.

How to Check If a Moneylender in Singapore Is Legit

Use this 3-step verification checklist:

Licensed Moneylender Should Have	Why It Matters
Listed on MinLaw’s official Registry	Only legal lenders are registered
Uses landline number starting with 6	Licensed lenders cannot use mobile numbers
Requires in-person face verification at office	Loan assessment must be done physically
Provides a written contract before disbursement	Protects both lender and borrower
Fee deductions happen only after loan approval	No upfront transfer requests

You can check the official Registry of Moneylenders by MinLaw to verify.

What To Do If You Suspect a Scam

• Stop communicating immediately

• Do not transfer any money

• Take screenshots of all messages

  
  

Report the case:

Reporting Channel	Contact
Police Hotline	1800-255-0000
Emergency (urgent threat)	999
X-Ah Long Hotline	1800-924-5664
I-Witness (online)	https://www.police.gov.sg/I-Witness
ScamShield App	For blocking scam SMS & calls

Stay Protected: Smart Practices to Remember

• Only borrow from licensed moneylenders

• Never entertain loan offers via SMS, WhatsApp, or Facebook

• Block unknown numbers promoting loans

• Verify lender using MinLaw Registry

• Keep your NRIC, Singpass & OTPs private

• Report scammers — help stop future victims

Loan scams thrive on urgency, fear, and secrecy. The more informed you are, the easier it becomes to spot and shut down any suspicious loan offers, especially those that look “official”.

Make it a habit to verify, never rush, and always protect your personal information.

Need a Loan from a Trusted Source?

Borrow safely with a fully licensed moneylender in Singapore. Whether you’re managing urgent expenses, planning a renovation, or consolidating debt, transparency, fair pricing, and legal compliance matter.

Looking for safe, approved loan options? Contact 1133 Moneylenders — where integrity and financial support go hand-in-hand.

Frequently Asked Questions (FAQ)

1. Can a licensed moneylender take legal action if I don’t repay on time?

Yes. While licensed moneylenders cannot harass or intimidate you, they can file a civil claim in court to recover unpaid debt if repeated repayment attempts fail.

2. How do I know if a loan offer on WhatsApp or SMS is real or fake?

All loan offers via WhatsApp, SMS, or personal mobile numbers starting with 8 or 9 are scams. Licensed moneylenders can only use registered office landline numbers and cannot approve loans via messaging apps.

3. Do licensed moneylenders ask for upfront fees, GST, or “refundable deposits”?

No. Licensed moneylenders do not collect any advance payments before disbursing a loan. All fees are clearly stated in the loan contract and deducted from the approved loan amount, never transferred separately.

4. What should I do if I have already paid money to a scammer?

Stop all communication immediately, collect all screenshots and transaction records, and file a report via the Police Hotline (1800-255-0000), X-Ah Long hotline, or ScamShield. You should also alert your bank.

5. Can a moneylender ask for my NRIC, bank login, Singpass, or OTP?

A licensed moneylender may only verify your identity in person using your NRIC during a face-to-face loan assessment. They will never ask for Singpass logins, bank credentials, OTPs, or scanned IDs via WhatsApp or email. Asking for these details is a major scam sign.