Key Takeaways
• Any WhatsApp, SMS, or social media message offering loans is illegal and always from an unlicensed money lender.
• Licensed money lenders never use personal mobile numbers, never ask for upfront fees, and never offer “online-only approvals”.
• A real loan requires face-to-face verification at the lender’s office and a proper written contract.
• Requests for Singpass login, NRIC photos through chat, or “activation fees” are strong signs of scams.
• Harassment, threats, and doxxing are criminal acts linked to loan sharks, not licensed lenders.
• Always verify a lender using MinLaw’s official list before sharing any personal information.
• If contacted or harassed by an unlicensed money lender, stop responding, keep evidence, and report the matter to the Police.
Loan scams in Singapore have grown sharply, especially with the rise of WhatsApp messages, Telegram chats, and fake “online lenders” posing as authorised lenders. Many victims are approached by unlicensed money lenders who behave like loan sharks. They misuse personal details, demand upfront fees, and even harass people who never agreed to take a loan. News reports from CNA and The Straits Times have highlighted cases in which victims lost thousands of dollars simply by replying to a scammer’s WhatsApp message. As these scams become more prevalent, it is even more important to recognise the warning signs early.
Licensed money lenders in Singapore follow strict rules. They must verify borrowers’ identities in person, clearly explain all loan terms, and issue proper contracts. Unlicensed money lenders do not follow any of these requirements. Below are the clearest indicators to help you remain safe when seeking swift loans, especially.
1. You Receive Unsolicited WhatsApp, SMS, or Social Messages Offering Loans
If someone messages you out of the blue offering a loan, it is a sure sign of an unlicensed money lender. Licensed lenders are not allowed to advertise through WhatsApp, SMS, Telegram, Instagram, TikTok, or any social messaging platform. These forms of outreach are banned under the advertising rules for licensed lenders. So when you receive a message claiming “fast approval”, “instant loan”, or “special promo”, it is never from an authorised business.
Scam messages often feel urgent or friendly. You may see phrases such as “same-day loan”, “low interest for you only”, or “approval within ten minutes, no documents needed”. These are crafted to prompt you to respond quickly. A real licensed lender will never approach you this way. They can only advertise on their own website, on approved business and consumer directories, or at their registered office. You can find the official rules by navigating the Registry of Moneylenders’ FAQs.
2. The “Lender” Uses Personal Numbers Instead of a Registered Business Line
Many unlicensed money lenders hide behind personal mobile numbers or foreign numbers that change every few days. They may have no official landline, no proper website, and no clear address. Some even create fake WhatsApp Business profiles that appear legitimate at first glance but disappear after a complaint is filed.
On the flip side, licensed lenders must ensure their office address and registered landline number are prominent and easily accessible. Their business identity is public and easy to verify. If a lender avoids giving you their full business name or insists on chatting only through a mobile number, it is a strong sign that they are unlicensed.
3. They Ask for Upfront Fees, Security Deposits, or “Processing Charges”
One of the most common scam methods is asking you to transfer money before the loan is released. Unlicensed money lenders often claim that you need to pay a small fee to “activate the loan”, to “verify your account”, or to “show commitment”. Once you send the money, they either disappear or continue demanding more.
Licensed lenders are not allowed to request upfront payments before granting a loan. Fees such as the administrative fee are regulated and can only be deducted from the approved loan amount after the contract is signed. If anyone asks you to pay first, they are an illegal lender trying to scam you out of your money.
4. They Demand Your Singpass Login or NRIC Photos Before Any Loan Is Granted
Scammers often request full NRIC photos, front and back, along with your Singpass login details. Some even ask you to take selfies of yourself with your NRIC or perform face scans on video. These tactics are used to steal your identity, take loans under your name, or threaten you later.
Licensed lenders will never ask for your Singpass password or request sensitive information through chat messages. They verify your identity only in person at their office while following strict PDPA rules. Any request to hand over Singpass access is a serious red flag and should be stopped immediately.
5. The Lender Avoids Face-to-Face Verification
A legal money lender must meet you in person before granting a loan. This is a compulsory part of the loan process. During the visit, they will verify your identification documents, explain the terms of the loan, and let you sign the contract at their physical office. The loan will also be disbursed only after this step is completed.
Unlicensed money lenders avoid meeting altogether. They claim the entire process can be completed online or via messaging platforms. They may say that you do not need to visit their office, or that a “remote signing” is acceptable. This is illegal. If there is no face-to-face meeting, you are not dealing with a licensed lender. Stop and disengage immediately.
6. They Pressure You With Urgency, Threats, or Emotional Manipulation
Unlicensed money lenders often rush their victims. They may claim that the offer is expiring soon, that you will lose your chance if you do not reply immediately, or that they need your details urgently. Some even threaten to blacklist you, involve the Police, or “freeze your account”. These messages can escalate into abusive language or harassment even before a loan is disbursed.
Licensed lenders do not behave this way. Their communication is formal, calm, and regulated. Any form of pressure, intimidation, or emotional manipulation is a clear sign that you are speaking to an unlicensed money lender.
7. They Offer Unrealistically Large or Easy Loans With “No Need for Documents”
A common bait used by unlicensed money lenders is the promise of large loan amounts with no income documents. They may claim that you qualify for a high sum even if your income is low, or that they can approve the loan without seeing your payslips, CPF contributions, or employment details.
Licensed lenders are required to assess your income and ability to repay. They cannot approve a loan without reviewing your documents. Any promise of “big loan, no checks needed” is illegal and unsafe. If the offer sounds too good to be true, it probably is a scam.
8. They Ask You to Transfer Money First “To Release the Loan”
Many victims are asked to transfer a small amount “to verify the account”, “to unlock the loan”, “to activate disbursement”, or “to clear outstanding blacklist status”. These reasons are fictional. Once you send money, the scammer will either disappear or continue requesting more.
A licensed lender in Singapore never requires you to pay before receiving your loan. If someone asks for payment upfront, it is almost certain that they intend to trick you out of your hard-earned money.
9. You Face Threats, Harassment, or Doxxing — Even if You Did Not Take a Loan
Some victims receive threatening calls and messages claiming they owe money, even when they didn’t accept a loan. Scammers may send photos of the victim’s home, identify family members, or threaten public shaming. This behaviour is criminal, and victims are not at fault. The correct step is to report the harassment to the Police, block all numbers, and keep evidence safely.
Harassment is a strong sign of an unlicensed money lender. Licensed lenders follow strict rules on communication and are not allowed to behave aggressively at any time, even during challenging debt-collection episodes.
Difference Between Licensed and Illegal Money Lenders
| Licensed Money Lenders | Illegal Money Lenders | |
| Office | Operate from an approved office | Do not have a legitimate office |
| Communication | Use a registered landline | Contact borrowers through personal messages |
| Fees and Contracts | Follow clear rules on fees and contracts | Demand upfront payments |
| Loan Explanation | Explain loan terms in detail in person | Make unrealistic offers with unclear terms |
| Behavior | Do not request money before granting a loan | Often use threats and demand upfront payments |
| Transparency | Transparent and accountable | Hide behind mobile numbers and a facade |
| Tactics | Rely on clear communication | Induce fear and a sense of urgency |
How to Verify a Licensed Lender in Singapore
The safest way to check if a lender is legal is to visit the Registry of Moneylenders’ official list of licensed lenders.
A licensed lender will have a clearly listed office address. You can call their business landline to confirm their details. When you visit their office, they will explain the loan terms and provide a proper contract before any disbursement. They will happily show you their moneylending licence as well. That’s not all. They will never ask for fees before approval and will always take time to verify your identity properly.
At a Glance: Unlicensed Money Lenders in Singapore
- Online lenders are only legal if they are licensed and run an approved, physical office in Singapore. Illegal money lenders tend to push for remote dealings.
- Any lender who initiates contact with you on WhatsApp or other messaging or social platforms is illegal.
- If you have already sent money to a scammer, recovery is usually difficult, but you should still file a report with the Police.
- You do not owe money if no loan was given, and sharing your NRIC alone does not legally tie you to any loan. What matters is staying alert and protecting your information — and money.
Final Thoughts: Protecting Yourself From Loan Scams in Singapore
Loan scams are stressful, but knowing the signs can help you avoid them. Always verify the lender on the official MinLaw list, avoid anyone who contacts you through WhatsApp, and never send money upfront. A genuine money lender in Singapore will always follow the rules and treat you with respect.
If you are looking for a licensed lender with authentic reviews, consider Soon Seng Credit. We are a legal money lender in Singapore with more than 3,000 positive Google reviews, and our shop is conveniently located near Chinatown MRT. Submit your loan application securely online or speak with our friendly staff for more information.
