‘Classic online loan scam’: RM15,000 loan turns RM75,000 ordeal as young mother hounded by syndicate

Foo (left) and the victim during a press conference at SUPP headquarters on April 18, 2026.

By Karen Bong

KUCHING, April 18: A 28-year-old mother of three has been left trapped in a crippling debt cycle, even after repaying more than RM75,000 for an accumulated loan of just RM15,000, some of which was forcibly credited into her account without consent, after falling victim to an online loan scam that subjected her to relentless harassment and death threats.

Feeling completely helpless, the victim turned to Sarawak United Peoples’ Party (SUPP) Public Complaints Bureau (PCB) chief Milton Foo for help.

In a press conference at SUPP headquarters today, the women detailed that the ordeal began in September last year when she clicked on a personal loan advertisement online and downloaded an application via the Google Play Store.

“Initially, I applied for a RM300 loan to purchase products at the company where I was working as I was under pressure to meet sales target. During the application, I submitted personal details including my photograph, identity card and bank account information.

“Within seven days, I was required to repay RM500, which I did before deleting the application,” she explained.

Believing the matter had been resolved, Foo said the situation quickly spiralled when she began receiving calls from unknown numbers. Despite blocking them, unknown parties started transferring money into her bank account without her consent, beginning with RM750 and demanding repayment of RM1,500.

“What started as one group became two, then three, then four. It kept snowballing. She was forced to borrow more money just to repay earlier debts,” he said.

The victim added that the first round involved 16 individuals, with the total amount escalating to RM5,000. With her husband’s help, she eventually repaid around RM60,000.

In February this year, a second wave occurred, involving 11 individuals with loan amounting to nearly RM10,000 and demanded repayment.

“I have repaid RM15,000, but they continued to demand up to RM41,000 in alleged interest,” the victim said.

Foo described the case as a “classic online loan scam”, warning that such tactics are increasingly widespread and can affect individuals from all walks of life.

“These are not legitimate loans but fraudulent schemes designed to trap victims in endless repayment cycles,” he stressed.

He also raised serious concerns over data security, noting that despite the victim only providing her own contact details, the scammers managed to obtain phone numbers of her family members, including her parents, in-laws and siblings.

“This shows that personal data is not secure. If they can access phone numbers, they may also know home addresses. This is not just a personal issue, it raises national security concerns,” he said.

Foo further condemned the use of threats and intimidation by the syndicate, which targeted the young mother and her family. The situation escalated when the scammers allegedly threatened to harm her children, prompting her to lodge a police report at the Siburan police station on April 11.

“They threatened to go to her house, harm her family, even kill them. This created severe fear and distress. It made her feel like she was living in a lawless environment where people’s safety is not guaranteed,” he said.

He added that the syndicate also resorted to defamation, spreading false accusations about the victim, including claims of drug abuse, gambling and immoral behaviour, using her personal data and photographs.

Foo urged the public to exercise extreme caution, especially when encountering unsolicited loans online.

“If you receive money from unknown sources, return it immediately and lodge a police report. Inform your bank and consider closing the account to protect yourself,” he advised.

He stressed that even individuals who have repaid loans are not safe, as scammers can continue to exploit previously submitted personal information.

“This is not the work of a single individual. It is an organised syndicate. Once your data is shared within their network, it can be misused in many ways,” he warned.

Calling for urgent action, Foo urged the government, lawmakers, Bank Negara Malaysia, the Communications Ministry and the Malaysian Communications and Multimedia Commission (MCMC) to take stronger measures against such scams.

“Online scams are no longer minor, they can destroy families. This victim experienced severe psychological distress as she even has suicidal thoughts. No one should be pushed to that point,” he said.

Foo also issued a stern warning to loan shark syndicates to cease their intimidation tactics.

“If there is a debt, it must be handled through proper legal channels, through lawyers and courts, not through threats or harassment. Debt collection must follow the law, not violence or fear,” he added. — DayakDaily