The Ministry of Commerce has urged the public to wary of dealing with an online loan business which goes by the Facebook name of “Cambodia quick loan”.

The Facebook account issued a deceptive advertisement, claiming that the business has been registered with the ministry. 

In a notice following a series of complaints from members of the public, the ministry flatly refuted the claim, saying the Facebook account had used its logo to deceive the people.

“We totally deny the use of our logo in the advertising materials of this online loan business. They have failed to register themselves as a commercial interest, and do not hold an online business permit or licence from us,” it said.

The ministry instructed the business to cease the use of its logo immediately and claiming ministerial recognition. It also warned that legal measures will be taken against any individual or group that tarnished the ministry’s reputation. 

Am Sam Ath, operations director at rights group LICADHO, said he has observed an increase in the amount of online loans being offered via social media, and that many people have fallen victim to them.

He added that many of the people who were fooled did not understand which businesses are legal and which are illegal. In addition, many of the businesses used their victims’ debt as tools to blackmail them.

“The relevant ministries and institutions should make it clear which companies are legally permitted to offer online loans, so that people will remain alert and will not be cheated,” he said.

He suggested that the government pursue legal action in the advent of public complaints or misleading advertising.

Sam Ath advised the public to carefully consider any offer that appears to be too good to be true, especially when it comes to accepting loans.