Couple loses over RM100,000 in savings in attempt to save son from loan syndicate

Lau (left) accompanied the victim's mother to lodge a police report.

SIBU: A couple’s attempt to rescue their son from an online loan syndicate ended in heavy losses after more than RM100,000 of their savings was wiped out within just over a month.

The ordeal began when their son was deceived by a financial loan advertisement on social media posing as a legitimate financing company.

Lacking experience and desperate for money, the young man accumulated RM30,000 in debts within a month.

What began as a RM1,000 loan eventually grew to RM30,000, without him realising that the offer was part of a scam.

The syndicate later imposed various additional charges and fees, claiming they were necessary to approve and process the loan.

When the victim failed to meet the demands, the syndicate began issuing threats, including splashing paint on and burning down the family home.

More alarmingly, they also threatened to plant drugs in the house to frame the family.

Fearing for their safety, the victim’s parents decided to meet the syndicate’s demands by borrowing money from friends and relatives.

However, the payments failed to stop the syndicate’s demands.

About a month later, the parents had handed over more than RM100,000 to the scammers — far exceeding the original RM30,000 loan their son had sought.

The continuous threats also caused severe emotional distress to the victim and his parents, affecting their mental well-being.

Left with no other option, the family sought assistance from the Sarawak chapter of the National Consumer Action Council (MTPN) Sarawak here on Wednesday (March 12).

MTPN Sarawak chairman Lucas Lau accompanied the victim to lodge a police report at the Sibu Central Police station to enable further investigation by the authorities.

Lucas said the syndicate’s actions were not only inhumane but also in violation of existing laws.

“This case can be investigated under the Moneylenders Act 1951, as well as Section 506 of the Penal Code for criminal intimidation and Section 420 of the Penal Code for cheating,” he said.

He also reminded the public not to easily trust easy loan offers advertised on social media.

“If you have already fallen into such a trap, do not continue making payments, as their demands will never end.

"Stop all communication, keep all records of conversations and transactions, and immediately lodge a report with the authorities,” he said.