Couple loses over $32k trying to rescue son from online loan syndicate in Malaysia

A couple in Malaysia lost over RM100,000 ($32,400) of their savings in over a month in their attempt to rescue their son from an online loan syndicate. 

After being deceived by a financial loan advertisement on social media posing as a legitimate finance company, their son soon found himself RM30,000 in debt. 

The loan had initially started off at RM1,000, but swiftly ballooned as the syndicate later added various charges and fees, claiming they were needed to approve and process the loan. 

When the victim failed to fulfil the demands, they threatened to splash paint on and burn down the family home. They also threatened to plant drugs to frame the victim's family, reported The Star.

Out of fear for their safety, the victim's parents borrowed money from relatives and friends to meet the syndicate's demands, handing over more than RM100,000 in just over a month.

However, the demands did not stop. 

On Wednesday (March 12), the victim's family reached out to the Sarawak chapter of the National Consumer Action Council (MTPN) Sarawak for help.

MTPN Sarawak chief Lucas Lau reportedly accompanied to the Sibu Central police station to lodge a report. Lau said that the syndicate’s actions were not only inhumane but also in violation of existing laws. 

He also reminded the public not to easily trust easy loan offers advertised on social media and told those who have fallen into such traps to discontinue payments as "their demands will never end".

Malaysia's Deputy Home Minister Datuk Seri Shamsul Anuar Nasarah had stated that there were over 47,800 online fraud or scam cases in Malaysia as of September 2025, with total losses amounting to RM1.9 billion, reported Bernama.

He noted that the rising trend is worrying, with cases increasing by 12,486 in 2025, from 35,368 in 2024. 

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esther.lam@asiaone.com