Police Crack Down on Loan Shark Network Targeting Small Traders, Five Arrested
GEORGE TOWN: A coordinated police operation has led to the dismantling of an illegal money lending syndicate that targeted hawkers and small traders, following the arrest of five local men in Penang and Kuala Lumpur.
Penang police chief Azizee Ismail said the arrests were carried out based on intelligence gathered by the Commercial Crime Investigation Department under an operation known as Ops Vulture.
The suspects, aged between 19 and 29, are believed to be part of an organised network that has been operating since 2022, offering unlicensed loans to individuals in need of quick cash.
“Initial investigations indicate that the group provided loans both online and through direct interactions, with interest rates ranging from five to 10 percent on either a weekly or monthly basis,” he said.
Authorities believe the syndicate’s flexible approach enabled it to attract borrowers who struggled to obtain financing from formal institutions, particularly small business operators.
Evidence Seized in Targeted Raids
During the operation, police seized multiple items believed to be linked to the syndicate’s activities, including 16 mobile phones, a tablet, loan-related documents, and ATM cards.
In addition, three vehicle remote controls and four vehicles—a Mercedes, a Toyota Alphard, a Perodua Myvi, and a Perodua Viva—were confiscated as part of the investigation.
Azizee said the suspects, who claimed to be partners in the operation, have been remanded for four days to assist in ongoing investigations.
The case is being investigated under Section 5(2) of the Moneylenders Act 1951, which addresses illegal money lending practices.
Targeting Vulnerable Communities
Police highlighted that loan shark syndicates often exploit individuals facing financial hardship, particularly small traders who require immediate capital to sustain their businesses.
However, the high interest rates and lack of transparency associated with such loans frequently trap borrowers in long-term debt cycles.
Authorities have warned the public to remain vigilant and avoid engaging with unlicensed lenders offering quick approvals without proper documentation.
They also urged members of the public to report suspicious activities to assist enforcement efforts.
The operation underscores the police’s continued commitment to combating financial crimes and protecting vulnerable communities from exploitation by illegal lending networks.
-wilayah.com.my
