Arson attack after fake loan scam: Malaysian family loses over US$72,000 in cross-border extortion case
A Malaysian family has been left homeless after loan sharks operating from Singapore allegedly set fire to an elderly couple’s home in Johor, following a fabricated debt claim against their son who had never completed a loan application.
- Loan-shark syndicate burnt down a Johor home over a fabricated debt and continued extorting the victims.
- The family suffered losses exceeding US$72,000, with further threats targeting other relatives.
- Police investigations are ongoing in both Malaysia and Singapore.
MALAYSIA: A 30-year-old Malaysian working as a driver in Singapore fell victim to extortion after merely entering his details into a Facebook loan advertisement.
Although he never finalised the loan, unknown individuals soon demanded S$3,500 (approximately US$2,600), threatening to burn down his parents’ home in Kluang, Johor if unpaid.
He later discovered that S$300 (approximately US$220) had been forcibly deposited into his bank account — a tactic commonly used by loan sharks to fabricate “debt”.
Arson Attack Destroys Family Home
In the early hours of 15 November, CCTV footage captured a sudden eruption of flames at the family courtyard.
The fire rapidly swept through the property, and despite the prompt arrival of firefighters, the residence was completely destroyed.
The family suffered losses exceeding RM300,000 (approximately US$72,762). Fortunately, the elderly couple were not home at the time.
Further Extortion Despite Devastation
A week later, the syndicate threatened to torch another family home — this time belonging to the victim’s father in Ipoh — forcing the family to pay S$7,000 (approximately US$5,200) as “protection money”.
Thinking the nightmare might end, they were stunned when the syndicate demanded an additional S$5,000 (approximately US$3,700), claiming it was payment for the “arson runner’s fee”.
Police Reports Lodged in Malaysia and Singapore
The victim’s wife, Ms Cheng, has lodged reports with both Malaysian and Singaporean authorities.
She sought assistance from MCA Public Services and Complaints Department chief Datuk Seri Michael Chong, stating that the family now lives in fear, while her in-laws temporarily stay with another son following the loss of their home.
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