Hyderabad Cyber Crime police caution public against fraudulent loan apps

The Hyderabad Cyber Crime police have issued a public advisory cautioning citizens about rise in frauds linked to illegal loan applications that promise quick loans with minimal documentation but later subject victims to harassment and extortion.

According to an officer, fraudsters are promoting fake loan applications through social media advertisements, SMS and online promotions by claiming that loans are approved instantly with minimal verification or by using only Aadhaar details.

Investigators said that the victims are persuaded to download unauthorised mobile applications which, once installed, seek access to sensitive data such as contacts, photo gallery and messages stored on the device. After a small loan amount is credited quickly, borrowers are often given extremely short repayment periods of around seven days along with excessive interest rates and processing charges.

Police said the payable amount often increases unexpectedly due to hidden charges. In some cases, additional loans are credited without the consent of the victim, pushing them into repeated repayments.

“When repayments are delayed, fraudsters resort to threats and harassment. They may call or send messages to the victim’s contacts, circulate morphed or defamatory images and threaten legal action to pressure victims into paying money,” police said. Victims also receive repeated calls from multiple phone numbers, which police said is intended to cause distress and force payment.

The police urged citizens to report suspected cyber frauds immediately through the national cybercrime helpline 1930 or by filing complaints on the cybercrime portal.