PETALING JAYA: Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf yesterday urged the public to avoid falling into the trap of loan sharks, or Ah Long, to prevent bigger problems for themselves.
He said despite financial struggles being a common issue, relying on loan sharks to borrow money often leads to deeper issues that many may not anticipate.
“I advise the public to avoid getting involved with loan sharks. They often resort to intimidation, threats and violence, putting your life and property at risk. Stay away from them to avoid serious consequences.”
According to the Home Ministry, 1,965 cases of violence involving loan sharks were reported between 2020 and August this year.
Ramli said based on the latest statistics between January and June, 400 loan shark cases were reported, with Johor recording the highest numbers over the past two years due to activities linked to a neighbouring country.
“In the first six months of last year, 588 operations against loan sharks were conducted, resulting in 704 arrests, while as of July, 440 operations were carried out and 416 arrested.”
On Nov 18, a 15-year-old was reported to have borrowed money from a loan shark just to satisfy his girlfriend’s craving for ikan siakap tiga rasa (barramundi cooked in a sweet, sour and spicy sauce) after he came across a TikTok advertisement.
Investigations revealed that the Selangor teenager owed money to 12 loan sharks. He has since dropped out of school, racking up a total of RM13,000 in debt.
Ramli said illegal money lending activities have moved to cyberspace as stringent enforcement is forcing many physical premises to shut down.
“We will continue our efforts against them and work closely with the Criminal Investigation Department to stamp out their activities.”
Universiti Teknologi Mara Academy of Small and Medium Enterprise and Entrepreneurship Development coordinator Dr Mohamad Idham Md Razak said illicit moneylenders use social media to advertise their services, leveraging its wide reach, anonymity and leniency.
He said the lenders use deceptive ads, target individuals through algorithms and appear legitimate by showcasing testimonials or fake reviews.
“Regulation is not going to happen on its own. It must include tougher digital advertising guidelines, collaboration between financial institutions and social media networks identifying and blocking illegal accounts.”
Mohamad Idham said driven by desperation, the convenience and quick access to loans often outweigh concerns about borrowing from unlicensed and unregulated moneylenders.
He said young people are now flocking to loan sharks because they are financially naive, coerced or exposed to predatory lenders taking advantage of their need for immediate cash.
“Access to instant money with minimum hassle, little financial knowledge and ignorance of serious consequences all conspire to make such predators particularly appealing to young people.”
He said a lack of parental guidance on money management and spending habits could leave youths in a desperate situation in which they focus on temporary relief rather than the long-term goal of growing their money.
“Those caught up with loan sharks should stay safe and think carefully to avoid worsening their situation. They should immediately seek help from legal authorities or financial counselling agencies for guidance without putting themselves at further risk.
“The government also needs to focus on increasing formal financial services by enhancing microfinance systems, digital financial inclusion and making it easier for the low-income group to access credit and reduce reliance on illegal money lenders.”
