How fake loan apps are now being conned by 'hunters'

Hameed Ashraf | NT

Bengaluru: As per the reports shared by the Karnataka Cybercrime department, this year has seen a worrying surge in deceptive android loan apps which have lured the gullible users with the promise of instant, easy funds and have extorted crores of rupees from them in 2023.

"Unverified loan apps use social media platforms to target their victims. It is difficult for the government and platforms to verify and certify them, although there are mechanisms set up by different departments. The loan apps turn into a blackmail scam as they entrap and humiliate borrowers. About 60 people have reportedly lost their lives in the country because of these Spyloan apps this year," a senior official from Karnataka CID, Cybercrime division, told News Trail.

With the rise in such cyber scams, citizens, techies, police officials and government functionaries in Bengaluru have been pointing towards how, in the absence of any government regulations, these predatory loan apps openly operate.

While the victims had faced their share of sufferings, several tech-savvy people in Bengaluru have started hunting and pushing these fraudulent spyloan apps into the 'victim spot.'

Sushanth, an employee of a private firm in Bengaluru, calls himself a "hunter."

He shared his experience while dealing with a fake loan app. "I made some stupid decisions and ended up in tight financial situations," he said.

"When le git NBFCs weren't giving me loans, in desperation I turned to these fake loan apps. Of course they went on their whole thing of if you don't pay us we'll share explicit photos to your contact list," he added.

Sushanth soon realised that these entities largely rely on threats to get their money and don't follow through most of the time.

"I decided to go on every fake loan app when the need came, borrow and delete immediately. For this I had shared fake documents with them. I blocked calls from unknown numbers and updated WhatsApp to reject unknown calls and messages. I started getting calls from random numbers for a week," Sushanth said.

How the fake loan apps operate

The fake apps usually target users by offering them instant loans of, say, Rs 20,000 for a short period.

As they install them, the apps request access to borrower's contact list, text messages, photo gallery apart from Aadhaar and PAN cards.

Once the borrower gives necessary permission to them, they collect the data and later use it to harass the borrower into paying more money than he/she had actually borrowed.

Despite being uneducated and lacking skills, the fraudsters are known to adapt newer technologies to scam people.

The Cyber Economics and Narcotics police in Bengaluru have advised the users to be mindful of the privacy permissions you grant to any application.

"If these apps seek access to your photo gallery and contacts list, do not install it," the police said.