Kota Sentosa rep warns public against illegal online loans after family targeted with RM25,000 extortion over RM500 debt

Yap speaking to the family members at the Kota Sentosa Service Centre on July 2, 2026.

By DayakDaily Team

KUCHING, July 2: Kota Sentosa assemblyman Wilfred Yap has urged the public to avoid illegal online loan platforms after a distressed couple sought his assistance following serious threats allegedly linked to an online loan taken by their son.

The parents told Yap that they received threats warning that their family home would be set on fire unless they paid RM25,000, purportedly to settle a RM500 loan their son had taken through an online lending platform.

Describing the incident as deeply disturbing and unacceptable, Yap said no family should be subjected to fear or intimidation due to criminal extortion tactics.

“I advised the family to remain calm, preserve all evidence, refrain from responding to the threats or making any payment to the perpetrators, and to cooperate fully with the authorities,” he said in a statement today.

A police report has been lodged, with the Royal Malaysia Police currently investigating the case.

Yap said the incident highlights the growing dangers of illegal online lending syndicates, particularly those operating through social media, messaging applications and websites that advertise fast approval and minimal documentation.

“Many illegal online lending syndicates deliberately lure borrowers with promises of fast cash and easy approval. However, once personal information has been obtained, some resort to harassment, intimidation, blackmail, and threats against borrowers and even their family members when repayments become disputed or delayed,” he said.

He warned that even small loans can quickly escalate into larger extortion demands through unlawful means, with syndicates exploiting borrowers’ personal data and contacts to pressure not only individuals but also their families and associates.

“Never assume that borrowing a small amount carries only a small risk. Unscrupulous lenders may exploit your personal data, contact lists, photographs, and home address to exert pressure not only on you but also on your parents, spouse, relatives, friends, and employers,” he said.

Yap stressed that such tactics are designed to instil fear and force victims into paying sums they may not legally owe.

He advised the public to verify that lenders are properly licensed before taking any loan and to seek assistance from legitimate financial institutions or government-supported financial counselling services instead of unverified online platforms.

He also urged victims of threats, harassment or intimidation to immediately lodge police reports, preserve all digital evidence, and avoid engaging directly with perpetrators.

“Public awareness is our strongest defence. We must not allow criminal syndicates to prey on vulnerable individuals and terrorise innocent families. By reporting such crimes promptly and remaining vigilant, we can help protect our communities and ensure those responsible are brought to justice,” he said.

Yap added that his service centre remains open to assist constituents facing similar issues and encouraged those in need of guidance to seek help. — DayakDaily