Loan Apps Scam - Transactions worth β‚Ή21,000 detected!

Loan Apps Scam – Transactions worth β‚Ή21,000 Cr. detected!

Recently, Telengana police detected loan apps scam and arrested 29 people till now including 3 Chinese nationals. The scam unfolded when police looked into the suicide case of 27 year old resident from Tamil Nadu. He committed suicide due to the harassment by these money lending apps. A bigger picture of this scam came when police come to know about the transactions worth β‚Ή21,000 crore.

Let’s know more about this scam and the involvement of Chinese national!

How Scam Unearthed –

On Dec 21, 27 year old Vivek from Chengalpattu from Tamil Nadu committed suicide. He had borrowed 8 lakhs from an app that promised quick loans. With interest, the man owed the app company Rs 11 lakh. When police investigated the case, they came to know that he was getting harassed by loan app companies. As a result he committed suicide.

Hyderabad police investigated four more suicide cases and found the same kind of reasons. The reason being harassment by fake loan apps. More than 4000 people filed complaints in Kerala against these loan apps harassment.

Police then dig more and was able to arrest 29 people including 3 Chinese officials. The main mastermind of the scam, was 27 year old Zhu Wei aka Lambo. He was arrested at Delhi’s Indira Gandhi International (IGI) airport as he was trying to leave the country. Lambo ran the scam through call centers in Gurugram, Bangalore and Hyderabad. He was overall head of operations of loan apps being run by the four companies.

Arrested accused in the case

How these companies harassed people –

First of all, these companies used to offer loans ranging from β‚Ή3000 – β‚Ή5000 through the apps. When the customers register through the app, they used to collect their personal information including contacts. Then they gave data to other companies to lure customer for loans.

Personal data was used against victims.

When customers took loans from these apps and was unable to repay it, then they put huge interest on the loans. After that, they called customers 8 to 10 times a day. As they have the contact information of the customers, they threaten to tell the family members and friends about their loans. They also used to create Whatsapp groups of a victim’s contacts humiliate him. They send many fake legal notices to victims and their family & friends.

Findings of the police till date –

After knowing about the scam, police had found a lot of information and also arrested many accused relating to the case. Following are the findings of the police till date –

  1. Scam was being run by Chinese nationals with help from many Indian people.
  2. The Cyber Crime Police Station in Hyderabad is probing as many as 27 cases pertaining this issue.
  3. Around 1.4 Crore transactions worth β‚Ή21,000 crore had took place in last six months.
  4. The funds have been allegedly routed to shell companies in Beijing and Singapore.
  5. The money was also used to run an online gambling racket, which was busted in August.
  6. There are over 72 apps which are lending money online without proper approvals from Reserve Bank of India and mandatory tie-ups with banks and registered NBFCs.
  7. Police has registered around 50 cases on fraudulent companies and further investigation is on.
  8. List of loan applications are Loan Gram, Cash Train, Cash Bus, AAA Cash, Super Cash, Mint Cash, Happy Cash, Loan Card, Repay One, Money Box, Monkey box, etc.
  9. The scam run through call centers in Gurugram, Bangalore and Hyderabad.

Police is looking more into the case and this scam has come under the ED. Further investigation will show the extent of the scam.

If you have any loan offering app and you have doubt on it, then uninstall it. Stay safe from these fake loan scam apps!

Thank you for reading!

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