Instant digital loan apps become easy targets for ‘fraud and harassment’!

After facing a financial emergency, a guy from Coimbatore recently downloaded a quick loan app. The requirements were simple, and the app did not require any guarantees. He obtained a loan of around 5,000, of which approximately 3,000 was deposited into his account after deductions. Despite the fact that the guy reimbursed the money, he continued to get calls on behalf of the app requesting further payments.

When he declined to pay, the caller threatened to share his modified photo with everyone on his phone’s contact list if he didn’t. When the individual went to the Coimbatore District (Rural) Police Cyber Crime Station, he discovered that he was not the only victim. Another victim, a lady, obtained a tiny loan via a micro-credit app, only to be referred to a slew of other digital fast lending applications. After receiving threat calls, the woman obtained a loan of one lakh and contacted the Cyber Crime police.

In the most recent instance, a guy from Coimbatore downloaded one of the rapid lending applications and applied for a micro-loan using his personal information. Despite the fact that he did not apply for the loan, he began receiving repayment calls. When he ignored such calls, he received an altered image of himself and his wife, which the caller threatened to send to all contacts on his phone.

‘We have received approximately ten complaints about cheating, threats, and harassment after obtaining loans from some of the fraudulent digital loan apps. Those that install them do not read the permissions that are requested since they are in a haste to make money. These applications gain access to mobile phone information like contacts and images, which are then exploited,’ stated S. Jayadevi, Inspector of Cyber Crime Station, Coimbatore District. According to her, many young people were being duped by phoney micro-credit applications.

The key thing that attracts users to these apps is the ease with which loans may be processed without the need for a guarantee. Details like copies of Aadhaar cards, voter ID cards, and Pan cards supplied during loan processing might be exploited. ‘Most crucially, contacts and images held on victims’ mobile phones were discovered to be exploited,’ she stated. The toll-free hotline 1930 may be used to report cyber financial fraud and freeze illicit transactions.