From paint threats to cyber scams: Ah Long syndicates turn to tech

SHAH ALAM - If you think dealing with Ah Longs (loan sharks) is limited to splashed paint and death threats, think again.

These syndicates have gone digital, using technology to ensnare victims through increasingly sophisticated cyber tactics.

Today, the internet is their new hunting ground, making them harder to trace and their victims more vulnerable than ever.

Sepang district police Commercial Crime Investigation Department head Assistant Superintendent Muhammad Mahesh Kumar Risya Abdullah said cybercrime is on the rise because smartphones with advanced features have become indispensable to everyday life.

“A phone in the hands of a journalist becomes a tool for reporting. But in the hands of a scammer, it transforms into a weapon of deception,” he told Sinar Daily.

From Loan Sharks to Scammers: A Growing Nexus

In recent years, the line between traditional loan shark operations and online scams has blurred. Many Ah Long syndicates now operate in tandem with scam networks, sharing resources, data and digital tactics to maximise profits.

What starts as a simple loan offer can spiral into a scam involving fake banking apps, identity theft or phishing schemes. These operations have evolved into a complex web of digital financial crimes.

Social Media: The New Hunting Ground

Loan sharks now use platforms like Facebook and TikTok to target individuals seeking quick financial relief. Flashy ads offering fast, low-interest loans were designed to lure victims.

Once contact is made, victims are redirected to messaging apps such as Telegram, Instagram or WhatsApp, where the real manipulation begins. On these platforms, they’re asked to submit personal documents, bank details and even selfies for ‘verification.’

“In many cases, you might find that calling the number on WhatsApp Call works, but calling it through your regular phone line doesn’t.

“This is because these numbers are designed to function solely on internet-based platforms or the perpetrators are located abroad, making it challenging for authorities to trace them," Mahesh said.

Sepang district police Commercial Crime Investigation Department head Assistant Superintendent Muhammad Mahesh Kumar Risya Abdullah

He explained how victims often pay repeated “processing fees” without ever receiving a loan.

“There are people who tried borrowing RM10,000 but ended up losing RM40,000 in fees. It’s shocking how easily people fall for it,” he said.

Some syndicates take it further, introducing another loan shark claiming to help clear debts, only to deepen the victim’s financial hole.

“They create a cycle of borrowing to repay previous loans. Some end up owing over RM100,000,” he added.

Physical Threats Haven’t Disappeared

Shockingly, Mahesh said syndicates still resort to physical intimidation in some cases, especially when provoked.

Drug addicts from remote areas were sometimes hired to splash paint or vandalise homes, delivering fear straight to victims’ doorsteps.

“These hired hands often have limited understanding of the law and are the ones who get arrested, while the masterminds hide behind legal grey areas,” he said.

In such cases, Mahesh urged caution.

“Avoid provoking them and report to the authorities. Many victims act hastily, which only worsens the situation,” he said.

How Mule Accounts Shield Masterminds

One major investigative hurdle, Mahesh highlighted, was the use of mule accounts, which are bank accounts under the names of unsuspecting individuals or coerced borrowers, used to receive scammed funds.

“These layers of anonymity protect the masterminds. Often, those arrested are people tricked into handing over their identities,” Mahesh said.

Victims are sometimes forced to surrender bank cards and login credentials, further complicating investigations.

Families Not Spared

These cyber-intimidation tactics also extend to victims’ families, who face emotional blackmail and cyberbullying.

“When families are dragged in, the stress becomes unbearable. They play on emotions, using threats and relentless harassment to extort more money,” he added.

He also revealed that Ah Longs are ahead of the curve when it comes to exploiting technology. They study new banking features before the public does and use fake mobile apps, public Wi-Fi and phishing links to steal data.

“They mimic trusted institutions by using official bank logos in fake ads on Facebook or Telegram,” he said.

Stay Alert, Stay Protected

Mahesh emphasised the importance of proactive action, such as blocking suspicious numbers and being vigilant about sharing personal information online.

Installing closed-circuit television (CCTV) systems at home, while not directly related to cyber scams, can serve as an additional layer of protection.

“Malaysians, especially the elderly nearing retirement, are particularly vulnerable. They’re drawn in by promises of high investment returns and lose their life savings. It’s devastating," he said.

He stressed that the digital tools we depend on are also being used against us.

“Twenty years ago, withdrawing money required a signature and physical presence, leaving little room for fraud. Today, the digital landscape offers anonymity to criminals and leaves victims with little recourse.

“To combat this, we must be more cautious and educate ourselves. The technology we cherish can also be used against us. We need to stay one step ahead, just as these scammers have," he said.

Meanwhile, Selangor Deputy Police Chief Mohd Zaini Abu Hassan explained that these criminals are skilled at exploiting both legal loopholes and intimidation tactics.

"They impersonate police officers, customs officials or other agencies to instill fear and manipulate victims into acting impulsively. These cases are not always straightforward scams but involve threats and complex networks," he told Sinar Daily in a statement.

Police have also recorded an uptick in various forms of online fraud, including:

• Investment Scams: Fake schemes offering fast, high returns.
• Job Scams: False remote jobs tricking victims into paying upfront.
• Love and Parcel Scams: Emotional manipulation to extort money.
• Phone Scams: Callers posing as authorities demanding payments.

Zaini urged the public to always verify claims with official agencies before taking action.

“Avoid online loan applications, which expose your personal data, and don’t click on suspicious links sent via messaging apps or emails,” he warned.

He also advised scepticism towards offers that seem too good to be true, such as luxury goods sold at extremely low prices.

“When in doubt, visit the nearest police station or call the Commercial Crime Investigation Department (CCID) Infoline at 013-2111222,” he added.

A Surge in Commercial Crime

For the record, Federal police’s CCID on Jan 10 revealed there were 41,701 commercial crime cases reported in 2024 alone, with total losses exceeding RM3 billion.

Of these, cheating cases made up the bulk, amounting to losses of over RM2 billion from 37,240 reports.

Online scams alone accounted for RM1.574 million in total losses. The figures mark a sharp surge from 2023, when 40,350 commercial crime cases were recorded, a 32.1 per cent increase from 2022.

As for Ah Long cases, the Home Ministry reported nearly 2,000 complaints between 2020 and August 2023.