PETALING JAYA: Illegal moneylending activities have moved to cyberspace as hard-hitting enforcement is forcing many physical premises to be wound up, according to police and anti-crime proponents.

Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Seri Ramli Mohamed Yoosuf said the force was unable to totally eradicate the ah long menace due to certain constraints.

“Among these factors are the shift of activities by loan sharks to cyberspace and the use of overseas-registered mule bank accounts.

“This has given loan sharks from neighbouring countries the upper hand in staying in business and carrying out their illegal activities.

“Nevertheless, we will continue our efforts against ah long and will work closely with the Criminal Investigation Department in stamping out their activities,” Comm Ramli told The Star.

He said there was a decline in cases between January and June this year where there were 400 cases involving loan sharks compared to the 543 cases recorded for the same period last year.

He said over the past two years, cases were highest in Johor due to loan shark activities from a neighbouring country.

He said 588 operations against ah long were conducted for the first six months last year with 704 people arrested while this year 440 operations were carried out and 416 people were nabbed.

Comm Ramli said apart from Johor, states that recorded a high number of loan shark cases were Sarawak, Penang and Selangor.

MCA’s Public Services and Complaints Department Datuk Seri Michael Chong said media reports and campaigns by the authorities have led to greater awareness but it has not drastically reduced their activities.

Chong added that while many loan sharks have moved their businesses to cyberspace, some have also shut down due to rigorous enforcement and financial losses.

“Seeing what they and their families may have to go through at the hands of merciless ah long, people are terrified and have stayed away even when they are in dire financial straits. But it is not enough to put the syndicates out of business,” he said.

Chong said a majority of the loan shark cases he has handled were fuelled by a persistent gambling habit among the debtors.

He said on average, his department handles about 30 loan shark cases each month.

“Since January, we have had 185 cases brought to us. In about 80% of them, gambling is the main reason for them taking such loans,” he said.

Malaysia International Humanitarian Organisation (MHO) secretary-general Datuk Hishamuddin Hashim said illegal moneylenders offering loans in person may have declined due to enforcement by the police but the syndicates remain a menace as they have taken their activities to cyberspace.

He said the online loan sharks ensnare and hoodwink their victims by claiming the loans are offered by banks and are for small-medium enterprises (SME).

He added that interest rates that were attractive in the beginning will then be inflated from 8% per annum to 50% per month.

“When the borrowers default on repayment, fines are imposed and the loan sharks resort to violent and aggressive bullying online to recover their dues, leaving the victim in immense distress,” he said, adding that many have slipped into depression.

“Victims were impoverished selling their properties and vehicles because of these loan sharks. We have handled cases of a RM10,000 loan ballooning to RM300,000 due to the fines and other ‘additional penalties’,” Hishamuddin said.

He said there are loan sharks who also offered debtors an “opportunity” to dissolve part of their loans by working for them and going after other defaulters, often to carry out illegal tasks such as splashing paint and setting fire to their houses.

“At the MHO, we do not negotiate with loan sharks. They are unlicensed and are illegal and we advise those who come to us that they need not pay them a single sen.

“What we do is to advise them to lodge police reports and we follow up with the authorities and allow the law to take its course,” he told The Star.

https://www.thestar.com.my/news/nation/2024/07/19/online-loan-sharks-a-tough-catch