Illegal Moneylenders Now Demand Apple IDs as Collateral, University Students Among Main Targets
PETALING JAYA: Illegal moneylending syndicates are adopting a new and alarming tactic by demanding borrowers surrender their Apple IDs as collateral for quick loans, with university students emerging as one of the most vulnerable groups.
The scheme, which is increasingly being promoted through social media platforms such as Facebook, promises fast cash with minimal requirements.
However, victims who agree to the arrangement may unknowingly hand over complete control of their smartphones and personal data to the syndicates.
Head of the Anti-Loan Shark Unit at Darul Muttaqim Quran and Fardhu Ain Centre (DM), Adam Mustapa, said the organisation has received nearly 50 complaints related to the scam in recent months.
According to him, borrowers are instructed to remove their personal Apple IDs and replace them with accounts controlled by the syndicate before the loan is approved.
“Many victims do not realise that by doing this, they are giving the syndicate full control over their devices.
“Once the syndicate’s Apple ID is linked to the phone, they can gain access to sensitive information, including photos, contacts and even the victim’s current location,” he said in a statement.
Adam explained that syndicates exploit Apple’s “Find My iPhone” feature to track borrowers and remotely control their devices.
If repayments are delayed or missed, the syndicate can lock the victim’s iCloud account, effectively rendering the smartphone unusable.
“A phone worth thousands of ringgit can suddenly become useless because the owner no longer has access to the device,” he said.
He added that the danger goes beyond losing access to a smartphone.
Victims also risk having their personal data exploited for intimidation and harassment.
Photos, videos and contact lists stored on the device may be used to pressure borrowers into repaying their debts, while family members and friends may also be contacted as part of the intimidation tactics.
Adam said university and college students are among the easiest targets because many face financial pressures and lack awareness about digital security.
Among the cases handled by the organisation was a 21-year-old public university student who used his iPhone 14 Pro Max as collateral for a loan.
Another case involved a female student from a private higher education institution in Sarawak who was deceived by an online advertisement offering easy loans.
“Most of these students only needed a relatively small amount of money.
“But because they were unaware of the risks, they ended up losing access to their phones and facing harassment from loan sharks,” he said.
Adam urged the public to be cautious of loan offers that appear too easy or require unusual conditions.
He stressed that digital identities, including Apple IDs, social media accounts and passwords, should never be shared with unknown parties.
According to him, people need to become more aware of evolving cyber threats and seek assistance from authorities or support organisations if they fall victim to such schemes.
Meanwhile, DM, which is based in Sentul, Kuala Lumpur, continues to assist victims of illegal moneylenders by helping them restructure repayments based on the original loan amount and offering moral support through free Quranic and religious education classes.
