Beware! Instant loan app fraudsters on prowl in city

Hyderabad: The cybercrime wing of City Police had cracked down heavily on companies in 2021 which were involved in giving away instant loans; recipients of the loans were being harassed by the companies due to which many gullible people were forced to commit suicide.

After the crackdown by the police it was found that most companies had involvement of Chinese who had also hired local Indians to give away loans. It was found that a huge syndicate of Chinese was operating behind the instant loan app frauds.

An officer from CCS, said, "We have been receiving a few complaints from persons claiming they are harassed by executives of loan app companies again. A preliminary probe into the cases indicated the servers and backend operations are in Nepal, Indonesia and the Philippines. After the crackdown on illegal instant loan apps and the Chinese angle coming to light, many loan fraudsters might have shifted to these countries to hide their Chinese identity, though many of them arrested were able to secure bail after few days of hearings."

The police arrested around 100 persons, including Chinese. A few key suspects, however, managed to leave the country before the police could arrest them. The police in Hyderabad, Rachakonda and Cyberabad had frozen bank accounts where amounts running into crores were deposited. In March this year, the police arrested two persons who were operating a call centre in Bengaluru, with around 100 persons, and providing short-term loans.

In 2020 a few incidents occurred wherein at least six borrowers ended their lives due to harassment by executives of loan app companies. In Hyderabad alone, around 50 cases were booked; while an equal number was booked in other districts. The special teams had in fact raided the call centres set up by loan app companies in Gurgaon, Bengaluru, Delhi and Hyderabad.

The officer, explaining the modus operandi of the accused gangs, said the suspects hosted loan apps in Google Play Store. Whenever people download the apps, the fraudsters obtain permission for access to the gallery, contact list and locations before providing loans. If the borrower fails to repay, all forms of harassment start. The app's profits from the loan app fraud were being sent via crypto-currency to different accounts suspected to be held by foreign nationals. The Hyderabad, Rachakonda and Cyberabad police filed charge-sheets in the cases. The cases are now under trial.

Now, it appears the app companies are back in business prompting the police to issue an advisory, asking people to stay away from instant loan apps and named at least 130 apps.

It is a well-organised network involving crores. If a handful of people are arrested, the main persons, staying in other parts of the world, will again resume business by collaborating with other local persons in India. We are writing to Google Play Store asking to remove instant loan apps from their platform immediately to prevent harassment of borrowers, said another officer, who wished to remain anonymous.