Beware: Loaents via TikTok Influencersn Sharks Prey on Students via TikTok Influencers
Loan sharks have moved from plastering posters on trees and lamp posts to infiltrating social media platforms like TikTok. This worrying trend sees illegal moneylenders targeting school students with flashy ads and influencer endorsements.
How It Works
By recruiting influencers with large followings, loan sharks promote “quick loans” or “emergency loans” that appear hassle-free. Students, especially those involved in online gambling or looking for extra funds for travel, are drawn in by these deceptive offers.
An alarming case recently came to light involving a 15-year-old from Selangor. He accumulated RM13,000 in debt to 12 loan sharks to indulge his girlfriend’s cravings for luxury meals.
The Strategy
Influencers are paid up to RM2,000 to pin these ads for just two days. Once followers express interest, they are connected to agents who link them directly to the lenders. Loan amounts range from RM2,000 to RM5,000 with steep weekly interest rates of 10–20%.
The loan sharks also exploit social dynamics, offering students RM100–RM200 commissions for introducing peers. This creates a vicious cycle of debt and dependency among young borrowers.
The Fallout
Repayment almost always falls on the students’ parents, who are often forced to negotiate hefty settlements. Refusal to pay can lead to public shaming, such as posters in the neighborhood naming the debtor. In some cases, families fall victim to intermediaries who exploit the situation for their own gain, taking hidden cuts from repayments while leaving debts unresolved.
Digital Risks Demand Digital Awareness
This shift to digital platforms underscores the urgent need for financial literacy among young people. Parents, educators, and authorities must work together to curb these exploitative practices and protect students from becoming easy prey in this new age of online lending traps.
Source: Malay Mail