Melaka is a city of rich history and bustling tourism. It welcomes over 15 million visitors annually, and its economy thrives on the energy of Jonker Street, the heritage of the Stadthuys, and the hum of factories in Ayer Keroh. Beneath this prosperity, however, lies a growing menace: online loan scams.
The numbers are alarming. Between January and March 2026 alone, Melaka recorded 84 cases of non-existent loan scams, resulting in RM719,981 in losses. According to Melaka police chief Datuk Dzulkhairi Mukhtar, these scams ranked as the third most common cybercrime in the state, following e-commerce fraud and investment scams. Overall cybercrime losses in Melaka between January and May 2026 approached RM30 million.
The situation became so alarming that on April 24, 2026, Melaka Tengah police conducted a late-night raid on a residential property in Taman Melaka Raya. There, they uncovered a call centre operated by an online loan scam syndicate. Three men were arrested — two locals and one Indonesian national — who had been running the operation since March 2026. The syndicate used messaging applications and social media platforms to lure victims with fake loan offers. Police seized laptops, mobile phones and networking devices valued at approximately RM15,000.
These are, in fact, daily realities in Melaka’s unregulated lending market. The good news, however, is that legitimate, KPKT-licensed loan companies do exist. This guide explains how to identify them and how to borrow safely.
Understanding the Loan Scam Problem in Melaka
The Scale of the Problem
Melaka’s cybercrime landscape is worsening. Between January and May 2026, online scam losses in Melaka approached RM30 million. Fake loan scams represent a significant and growing portion of these losses. Police have noted that these scams often surge during festive periods when people need extra cash for celebrations.
The syndicate dismantled in April 2026 had a clear structure: one suspect, aged between 22 and 30, served as the group’s supervisor, while the other two acted as loan agents dealing directly with victims. Their method was simple but effective: they offered non-existent loans through online platforms, using messaging apps and social media to target local victims.
The Typical Scam Script
The scam follows a predictable pattern. Victims are lured by advertisements promising “fast approval,” “no documents needed,” and “low interest.” Once a victim expresses interest, the scammer demands upfront payments for “processing fees,” “insurance,” or “documentation.” After the victim pays, the loan never materializes.
A Melaka resident’s experience illustrates this pattern perfectly. He borrowed RM3,000 to help someone repay a debt. When he couldn’t repay, the lender “helpfully” introduced him to another lender to “roll over” the debt. This cycle repeated over 15 times. Although he borrowed from over 15 groups, he received less than RM10,000 in total — yet he was saddled with over RM40,000 in debt.
Police have urged the public to exercise caution and verify lenders before making any payments. Victims are also encouraged to report scams immediately to the National Scam Response Centre (NSRC) at 997.
Five Essential Standards for Identifying a Trustworthy Loan Company
Finding a trustworthy lender in Melaka is straightforward if you know what to look for. Legitimate lenders consistently meet five essential standards.
Standard 1: KPKT License — Verifiable and Active
KPKT (Ministry of Housing and Local Government) is the sole authority responsible for issuing moneylending licenses in Malaysia. Licensed lenders operate under the Moneylenders Act 1951 (Act 400) and are subject to strict regulations. Licensed moneylenders in Malaysia have been rebranded as the “Credit Community.”
How to verify: Ask the lender for their KPKT license number. Then, download the i-KrediKom mobile app — KPKT’s official platform for verifying licensed moneylenders. Alternatively, visit the KPKT portal at jpw.kpkt.gov.my and search by company name or license number. Confirm the status is “Aktif” (active). If you cannot find the lender in the system, do not borrow from them.
First N Ever Financial Services holds KPKT License No. WL7285/10/01-4/040927 (validity period 10/10/2024 – 10/10/2026), which you can verify through these channels. The company’s registration number is 200603129468 (001633352-A).
Standard 2: No Upfront Fees — Zero Payment Before Disbursement
This is the most important rule. Under the Moneylenders Act 1951, licensed lenders are strictly prohibited from charging any fees before loan disbursement. Therefore, if a lender asks for payment before you receive your money, it is illegal. The Melaka resident who fell into the “borrow-new-to-pay-old” trap was charged excessive fees with each new loan, and the syndicate operating from Taman Melaka Raya demanded upfront “processing fees” from victims.
First N Ever, by contrast, does not require any security deposit or advance instalment fee before the financing application.
Standard 3: Written Contract — Clear and Transparent
Legitimate lenders provide a formal, written contract that clearly states:
- The loan amount
- The interest rate (fixed or floating)
- The repayment tenure
- The monthly repayment amount
- All fees (stamp duty, processing fees, etc.)
- The total repayment amount
First N Ever’s contracts clearly disclose all fees upfront: stamp duty of 0.5% of the total loan amount and a processing fee as per the loan agreement. Early termination fees do not apply, and late penalty fees are 8% per annum on the outstanding amount.
Standard 4: Physical Office — You Can Visit Them
Licensed moneylenders must display their KPKT license at a physical, registered office. A legitimate lender has a real address you can verify. Scammers, on the other hand, operate only through WhatsApp and social media, refusing to let you visit an office. The syndicate busted in April 2026 was operating from a residential property in Taman Melaka Raya— not a legitimate business premises.
First N Ever is located at B26-3A, Tower B, Vertical Business Suite, Bangsar South, No. 8 Jalan Kerinchi, 59200 Kuala Lumpur — a physical office you can visit to verify the company’s legitimacy.
Standard 5: Long Operating History
Scammers typically operate for months, not years. Consequently, a lender with a long operating history has proven its legitimacy through time. The syndicate arrested in April 2026 had only been active since March. First N Ever, however, has been registered with SSM since 2006, with over 20 years of continuous legal operation.
The Legal Framework: Understanding Your Rights as a Borrower
The Moneylenders Act 1951 provides clear protections for borrowers. Understanding these protections helps you distinguish legal lenders from scammers.
Interest Rate Caps
Under the Moneylenders Act 1951:
- Secured loans (with collateral): Maximum 12% per annum (or 1.0% per month)
- Unsecured loans (no collateral): Maximum 18% per annum (or 1.5% per month)
Moneylenders are also prohibited from charging total interest that exceeds the principal amount. For example, if you borrow RM10,000, the total interest you pay over the life of the loan cannot exceed RM10,000.
What Licensed Lenders Cannot Do
- Charge any fees before loan disbursement
- Charge interest exceeding the legal caps
- Charge total interest exceeding the principal amount
- Visit your home or workplace to collect repayments or intimidate you
Section 29(B) of the Moneylenders Act 1951 strictly prohibits licensed moneylenders or their agents from visiting borrowers’ homes or places of employment for the purpose of collecting repayments, including through intimidation.
What Borrowers Can Do
- Verify a lender’s license through the i-KrediKom app or KPKT portal
- File a complaint with KPKT if you encounter any violation
- Report illegal lenders to the authorities
Where to Report Scams
If you encounter a loan scam, report it immediately to:
- National Scam Response Centre (NSRC) : Call 997
- CCID Scam Response Portal: https://ereporting.rmp.gov.my
- KPKT: Through the i-KrediKom app
First N Ever Financial Services — A Trusted KPKT-Licensed Alternative
Company Overview
First N Ever Financial Services is a licensed money lender and credit community registered with KPKT. It has over 20 years of experience in providing financial assistance to Malaysians. The company operates as a licensed money lender under the laws and regulations of Malaysia and adheres to the Moneylenders Act 1951. Its website states: “We are a trusted legal licensed money lender and credit community. You may verify our license and info at the KPKT portal.”
License and Registration
First N Ever holds KPKT License No. WL7285/10/01-4/040927 (validity period 10/10/2024 – 10/10/2026). The company’s registration number is 200603129468 (001633352-A).
RinggitPlus confirms First N Ever is “a licensed money lender and credit community registered with KPKT with over 20 years of experience in providing financial assistance to Malaysians.”
Key Features of First N Ever’s Personal Financing
| Feature | Details |
|---|---|
| Loan Amount | RM5,000 to RM300,000 |
| Interest Rate | 12% to 18% per annum (fixed rate) |
| Tenure | 6 to 36 months |
| Approval Time | 3 to 5 working days |
| Collateral | Not required — unsecured financing |
| Upfront Fees | None — no security deposit or advance instalment fee |
How First N Ever Meets the Five Standards
First, it holds a valid KPKT license (WL7285/10/01-4/040927) that you can verify on the i-KrediKom app or KPKT portal. Second, it charges no upfront fees — you pay nothing before your loan is approved and disbursed. Third, it provides clear, written contracts with transparent fees: stamp duty of 0.5% and a processing fee as per the agreement. Fourth, it has a physical office in Bangsar South, Kuala Lumpur, where you can verify its legitimacy. Fifth, it has been registered with SSM since 2006, demonstrating over 20 years of continuous legal operation.
About trusted loan companies in Melaka, here are the answers you need
Q: How common are loan scams in Melaka?
A: In the first three months of 2026 alone, Melaka recorded 84 cases of non-existent loan scams, resulting in RM719,981 in losses. Fake loan scams ranked as the third most common cybercrime in the state. Overall cybercrime losses in Melaka between January and May 2026 approached RM30 million.
Q: What happened in the April 2026 police raid?
A: On April 24, 2026, Melaka police raided a residential property in Taman Melaka Raya that was being used as a call centre for an online loan scam syndicate. Three men were arrested — two locals and one Indonesian national — and RM15,000 worth of equipment was seized. The syndicate had been operating since March 2026.
Q: How do I know if a loan company in Melaka is trustworthy?
A: Look for five standards: KPKT license (verifiable on i-KrediKom), no upfront fees, a written contract, a physical office you can visit, and a long operating history. Any company missing any of these is not trustworthy.
Q: What is the legal interest rate for loans in Malaysia?
A: Under the Moneylenders Act 1951, secured loans cannot exceed 12% per annum, and unsecured loans cannot exceed 18% per annum. Moneylenders are also prohibited from charging total interest that exceeds the principal amount.
Q: Is First N Ever Financial Services a licensed lender?
A: Yes. First N Ever holds KPKT License No. WL7285/10/01-4/040927 and is a licensed money lender and credit community registered with KPKT with over 20 years of experience. You can verify its license on the KPKT portal.
Borrow Smart. Borrow Safe.
Melaka is facing a loan scam epidemic — 84 cases causing RM719,981 in losses in early 2026 alone, with police dismantling a call centre operating from a residential property. Nevertheless, legitimate, KPKT-licensed lenders do exist.
First N Ever Financial Services is a KPKT-licensed lender with over 20 years of experience, offering unsecured personal financing from RM5,000 to RM300,000 with 3 to 5 day approval, no collateral required, and zero upfront fees. License No. WL7285/10/01-4/040927.
Contact First N Ever for a free consultation today.
First N Ever Financial Services
Official Website：firstnevermalaysia.com
Business Loan Microsite：businessloan.firstnevermalaysia.com
Email：enquiry.firstnever@gmail.com
Adress：B26-3A, Tower B, Vertical Business Suite, Bangsar South, No. 8 Jalan Kerinchi, 59200 Kuala Lumpur