Loan scams are becoming alarmingly common in Singapore, often targeting people who urgently need funds or aren’t familiar with how licensed moneylenders operate. These scammers go the extra mile — creating fake licenses, sending official-looking texts, and even setting up convincing websites. It’s not just about losing money; victims may also have their personal data stolen or face threats from illegal lenders. What’s worse, these scams are spreading fast through everyday channels like SMS, WhatsApp, and social media. So how can you stay safe? In this post, we’ll show you how to identify licensed moneylenders, recognize red flags, and take smart steps to avoid being scammed.
How To Avoid Loan Scams And Identify Licensed Moneylenders In Singapore
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Verify the Moneylender Through Official Government Sources
The first and most important step in avoiding scams is verifying the legitimacy of the lender. Licensed moneylenders in Singapore are regulated under the Moneylenders Act and must hold a valid license issued by the Ministry of Law. They’re only allowed to operate if their business name, office address, and contact information appear on the Registry of Moneylenders (ROM).
Scammers often copy branding, websites, or business names similar to real lenders to appear credible. They may even create fake “licenses” to convince unsuspecting borrowers. That’s why it’s essential to refer to the ROM’s official list at https://rom.mlaw.gov.sg before taking any further steps.
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Know How to Check Licensed Moneylenders
Getting a clear understanding of how to check licensed moneylenders is your main defence against fraud. On the ROM website, you can search by company name, business registration number, or license number. It’s not enough to take someone’s word or trust what’s on a website or flyer. You must manually cross-check the lender’s details against the registry.
Pay special attention to the lender’s address and contact number. Many scammers will operate under a similar-sounding name or claim to be an “online division” of a real company — don’t fall for it. The ROM doesn’t list “online-only” moneylenders because all licensed lenders in Singapore must maintain a physical office, regardless of whether they offer online applications. If the name, address, or number doesn’t match what’s on the ROM — it’s not legit.
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Avoid Unsolicited Loan Offers via SMS, WhatsApp, or Social Media
This is one of the most common tactics in money lender scams in Singapore. You might receive an unexpected SMS, WhatsApp message, or even a social media DM offering fast, low-interest loans with “guaranteed approval.” These messages may look professional or even use real company names and logos, but make no mistake — they are illegal.
Licensed moneylenders in Singapore are not allowed to advertise through such platforms. According to the Ministry of Law, legal advertising is limited to business directories (like Yellow Pages), the moneylender’s own website, and signage on their physical premises. If you receive a message out of the blue, it’s likely from an unlicensed or fake lender trying to scam you. Do not engage — block the contact and report it to the authorities.
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Review the Website Carefully
Fake moneylenders often set up convincing websites that mimic real companies. They might use a nearly identical logo, professional layout, and official-sounding language. Some even create fake testimonials or display fake accreditations. It’s your job to scrutinize these websites before trusting them.
Check for things like the domain name — is it a .sg site or an unfamiliar domain like .info or .xyz? Are there typos, vague loan terms, or pressure to act quickly? These are all red flags. Cross-check the website’s contact details with those listed on the ROM. Legitimate legal money lenders in Singapore don’t hide behind generic contact forms or encrypted chat apps. They offer full transparency about who they are and how to reach them.
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Never Pay Upfront Fees
This is one of the clearest signs of a scam. No licensed moneylender in Singapore will ask you to pay fees before your loan is approved or disbursed. Charges like administrative fees or stamp duties — if applicable — are deducted from the loan amount itself, not collected in advance.
Scammers often claim you need to pay a “processing fee,” “security deposit,” or “insurance” to receive the loan. Once you pay, they disappear. Some may even string you along with fake approvals to get more payments from you. If a lender requests any payment before you receive your loan — no matter how small — end the conversation immediately. This practice is illegal, and it’s a clear indicator you’re dealing with a fraudulent operator.
If you’re looking for a reliable borrowing option, Fast Money is a licensed moneylender in Singapore, fully registered with the Ministry of Law. With over a decade of experience in the industry, we have built a strong reputation for transparency, professionalism, and ethical lending practices. We operate strictly within Singapore’s legal framework, offering clearly structured loans with no hidden fees, no upfront payments, and all terms documented in official contracts. Our clear communication, responsive support, and strict compliance with government regulations make us a safe and trustworthy choice for anyone seeking financial assistance.
Summary:
Staying safe from loan scams in Singapore starts with awareness and action. By learning how to identify red flags and verify licensed moneylenders, you can protect yourself from financial loss, identity theft, and illegal harassment. Remember — if something feels rushed, secretive, or too good to be true, it is likely a scam. When you need a loan, choose a lender that’s proven, professional, and fully compliant with Singapore law.
Fast Money checks all the boxes — we’re licensed, transparent, and here to help you borrow safely. Apply with Fast Money today and experience safe, hassle-free lending.
