Loan App Frauds: They Steal Money & Peace
Staff Reporters
Guwahati: Loan app frauds are the latest on the block to steal your peace of mind as well as your money in the process. Loan app fraud cases have been increasing due to the rise of digital lending.
In such frauds, the scammers create seemingly legitimate loan applications to deceive users into providing financial information. These apps often promise quick and easy loans with minimal requirements. Once users download the app, the victim would unknowingly give access to their contact list and apply for a loan. The scammers harvest sensitive data (Aadhar card and PAN card), including bank details. The scammers will demand money, which if not fulfilled, they threaten to share morphed photos of the victim with their contacts via WhatsApp. Those indulging in loan app fraud carry out harassment, force borrowers to take more loans, and even blackmail them to pay up or get morphed photos of victims to circulate on social media, police sources revealed.
Loan app operators do not lend out the full loan money but charge interest and levy other charges. For instance, for a loan amount of Rs 10,000, they will disburse a maximum of Rs 6,000-7,000. Calls for paying interest starts even before the due date. Intimidation and threats are their choice weapons deployed on borrowers unfortunate to fall into their clutches.
Borrowers who fail to repay their loans may be harassed by lenders through call centres, mostly with international numbers. This harassment can include blackmail, leaking of personal details, and sending fake legal notices to the borrower’s family.
Borrowers may be forced to take out more loans to repay existing loans, creating a cycle of debt. Borrowers may have excess amounts credited to their accounts without their consent and then be harassed to repay the extra money. Loan app companies may circulate photos of borrowers and their families that have been morphed to make them look like cheaters or even worse.
Some loan app companies may create WhatsApp groups using the borrower’s phone book and send lewd messages.
Here are some things to be aware of when dealing with loan apps: check permissions—fake apps may request unnecessary access to personal data. Before allowing an app to access your phone details, check thoroughly and only allow access if necessary.
The Reserve Bank of India (RBI) has issued regulatory guidelines on digital lending to increase transparency in the digital loan space. Morever, awareness campaigns are run in schools, colleges, and other public places to educate people about cyber fraud.
Police data also revealed that in the year 2024 (from January to July 14), 134 cases of fake loan apps amounting to Rs 4 crore have been recorded in the country.
Also Watch: