Why do loan sharks rely on phones and public posters instead of offices?

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Loan Sharks Utilize Ubiquitous Advertising Channels Due to Lack of Formal Infrastructure

Loan sharks predominantly rely on telephone numbers and public posters for advertising their illicit services because they operate without formal business premises. This reliance on easily disseminated, informal channels is a direct consequence of their illegal status, which precludes them from establishing legitimate offices. The Malaysian Muslim Consumers Association (PPIM) has highlighted this operational characteristic as a key vulnerability that authorities can exploit to disrupt their activities.
Absence of Legitimate Business Structures

The illegal nature of loan sharking prevents the establishment of registered businesses or physical offices. Consequently, these entities cannot engage in conventional advertising methods that require a verifiable business address or corporate identity. Instead, they must resort to methods that bypass regulatory scrutiny and reach potential victims directly in public spaces.
Cost-Effectiveness and Reach of Public Advertising

Advertising through posters and banners placed in public areas, alongside the dissemination of phone numbers, offers a cost-effective and wide-reaching method for loan sharks. This approach allows them to target a broad audience with minimal overhead compared to maintaining a business premise. The ubiquity of such posters, often found in high-traffic areas, ensures consistent visibility for their services.
Enforcement Challenges and Victim Impact

The reliance on transient advertising mediums like posters presents a challenge for enforcement agencies, as these can be easily removed and replaced. However, the Malaysian Muslim Consumers Association (PPIM) advocates for consistent removal of these advertisements and termination of displayed phone numbers as a strategy to cripple loan shark operations. Since 2015, PPIM has received 11,650 complaints from victims, aged 18 to 70, indicating the significant impact of these activities on the public.

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Why do loan sharks rely on phones and public posters instead of offices?

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