Crime & Courts

Penang police bust fake loan syndicate, 18 nabbed

GEORGE TOWN: Police busted a fake loan syndicate with the arrest of 18 people in two separate raids in Batu Ferringhi here last Thursday, which involved monthly losses of up to RM500,000.

State Commercial Crime Investigation Department chief Assistant Commissioner Mohd Rosni Mohd Lazim said, acting on a tip-off, police raided a house in Jalan Sungai Emas Satu, Batu Ferringhi here last Thursday and detained 12 people, including two women, aged between 16 and 23, in the living room.

He said, following their arrests, police seized 34 cell phones, two laptops and 14 automated teller machine (ATM) cards.

"All those arrested admitted to being involved in the non-existent loan syndicate as call operators. They received between RM3,000 and RM5,000 in monthly wages.

"Based on investigations, they have been operating for the past six months, using social media platforms such as Facebook and Instagram to seek out potential victims.

"The syndicate also constantly changed their base, moving from one rented house to another, to avoid detection," he told a press conference at the state police headquarters here today.

Present was state police chief Datuk Mohd Shuhaily Mohd Zain.

One of the suspects detained had rented the premises through an agent for RM3,500 monthly.

Rosni said, in a follow-up operation, police raided another house in Solok Sungai Emas, Batu Ferringhi here and detained six people, including a woman, also believed to be members of the syndicate.

In the second raid, police seized 10 cell phones, one laptop and 11 ATM cards.

"Checks on the items seized, namely the cell phones, revealed there were 21 cases linked to the syndicate members in 12 states, except for Perlis and Melaka.

"Proceeds from their cheating activities amounted to between RM300,000 and RM500,000 every month," he added.

Rosni said the syndicate's modus operandi was to ask their victims to fill in their personal particulars in a link provided.

"They will then contact the victims and ask them to make all sorts of payments for processing purposes.

"The syndicate members will use all sorts of excuses to convince the victims. However, after payments have been made, the syndicate members will block the victims' calls," he said.

Rosni also said that one of the 18 detained was the supervisor of the syndicate based here.

"We believe the syndicate has links nationwide. We are still tracking down other syndicate members," he said.

The case is probed under Section 420 of the Penal Code for cheating and Regulation 5(1) of the Prevention and Control of Infectious Diseases Act 2021.

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