Cops find loan sharks' new app-roach to ensnare borrowers

IPOH: The police have discovered a new way by illegal moneylenders to offer their services – mobile applications.

Perak police chief Comm Datuk Mior Faridalathrash Wahid said they discovered the apps after receiving a report from a complainant who had borrowed money from loan sharks through an app.

"We have checked and found a few apps that can be downloaded into our smartphones.

"Loan sharks used to advertise their services through text messages, banners and social media. Now, it's mobile apps," he told a press conference here on Monday (Jan 10).

Comm Mior Faridalathrash said users would have to enter their personal details and upload their photographs using the app.

"They are also required to record a video clip of them holding their MyKad and stating the amount they want to borrow.

"The loan shark will threaten the borrowers to upload pictures of their families on social media if they fail to pay back the money with interest," he said, adding that the apps were believed to have existed since two years ago.

Comm Mior Faridalathrash said they were checking with the Malaysian Communications and Multimedia Commission on the legality of some of the apps and urged the people to stay away from illegal moneylenders.