Be careful, loan sharks are now on Tik Tok! Here’s How They Lure Students Using Social Media Influencers

KUALA LUMPUR, Dec 3 — Loan sharks have swapped posters on trees and lamp posts for flashy advertisements on social media platforms like TikTok, targeting school students in a worrying new trend.

Illegal lenders lure students, especially those addicted to online gambling or frequent travel, with offers of “emergency loans” or “quick loans” that seem easy and hassle-free.

This change was revealed when a 15-year-old boy from Selangor recently revealed that he had racked up RM13,000 in debts from 12 loan sharks. The teenager said he borrowed money to satisfy his girlfriend’s cravings. siakap tiga rasa — barramundi cooked in a spicy, sweet and sour sauce.

While students may seem unlikely targets due to their limited spending money, loan sharks find this strategy profitable, thanks to the reach and influence of social media.

Isaac, a loan shark who spoke on condition of anonymity, said TikTok and other platforms have become lucrative avenues for illegal lenders.

“They hire agents to seek out influencers with large followings, offering them advertising deals to promote loan services,” he said.

The new tactic highlights how loan sharks are evolving to exploit digital platforms, raising concerns about the risks posed to vulnerable young users.

He said some social media influencers can earn up to RM2,000 by pinning loan shark ads on their pages for just two days.

If their followers express interest in borrowing money, influencers put them in contact with an agent, who then directs them to loan sharks.

“If you just type ‘loans’ into TikTok or Facebook, you’ll see a lot of ‘ha long’ ads using phrases like ’emergency loans’, ‘quick loans’ or ‘loans for those not working.’

“No ‘ah long’ will openly admit that they are one and the same.

“Students usually borrow from loan sharks because they want to go on vacation or cover expenses that their pocket money cannot cover.

“Loan sharks usually lend between RM2,000 and RM5,000 to students, charging interest rates of 10 to 20 percent per week.

“They do background checks on students, and the wealthier their parents are, the higher the loan amounts they approve.

“If a student introduces another friend to the loan shark, they receive a commission of around RM100 to RM200.

Even though it’s not a large amount, students looking to make a quick buck often fall into the trap,” Isaac said. Malaysian mail.

When students fail to repay their debts on time – which is almost always the case – their parents are often forced to step in and negotiate a lump sum settlement with loan sharks.

According to Isaac, loan sharks generally require parents to pay only the accrued interest, which remains significantly higher than the amount the student originally borrowed.

If parents refuse to pay, loan sharks resort to public humiliation by placing posters in the student’s neighborhood, declaring that they owe money to “ah longs.”

To avoid such embarrassment, most parents end up paying.

Some parents, however, fall into more serious difficulties by turning to intermediaries who claim to be able to make the loan sharks disappear. Isaac explained that these intermediaries often present themselves as champions in the fight against illegal lenders on social media.

While negotiating settlements on behalf of victims, these intermediaries secretly take a portion of the payment without the victim or the loan shark realizing it.

“The victim thinks she has paid the loan in full, but the loan shark continues to pursue her, thinking there is still an outstanding balance,” he said.