Lack of due diligence from digital service providers only leading to rise in loan app scams in Bengaluru
Lack of due diligence from digital service providers only leading to rise in loan app scams in Bengaluru
A 37-year-old businesswoman from Yelahanka recently approached the North East Cyber Crime Police to report about five mobile numbers, which were not only spamming her with calls, but had also accessed her trading app to withdraw ₹4,800.
The victim said that a person, who called to inform her about a loan app Rupee, started harassing her, her contacts, and her family members to repay a loan that she never took. She never downloaded the app, she said in her complaint.
The businesswoman is not alone. The loan app scam seems to be a new category of cyber crime. It has topped the list of cases being reported in the city recently.
At least one in 10 cyber crime cases being reported in the city are related to harassment by loan apps, said senior police officials. Despite awareness and measures to curtail the menace, it continues unabated.
The modus operandi is simple: there are hundreds of apps freely available on the Google Playstore offering quick loans. Any person who downloads the app is giving access to his/her mobile phone. People who have access to the phone can cause havoc, a senior police officer, said.
However, even those who have not downloaded any of these apps may also end up getting messages, as someone who have their number on their contact list may have downloaded such an app.
Investigation into these cases also faces major challenges. “Most of the executives of these apps use WhatsApp calls and laptops to communicate. Accessing the IP address to track them is near impossible, unless mobile phones or direct calls are used,” an officer involved in multiple probes of loan app scams said.
The trend began with Chinese instant loan apps, busted across the country, including by the Criminal Investigation Department (CID) in the State, two years ago. However, soon local cyber crooks have caught on to the trend and loan apps have mushroomed, posing a challenge to the police.
Safety tips
Use protected and safe websites
Do not access any unknown links
Do not download any unauthorised apps
Ensure strong password for your device and social media accounts
Call 112 to report Cybercrime Incident Report (CIR) facility to get the bank accounts of suspects frozen in case of fraudulent access to bank account or data theft
Police officers also blame a lack of due diligence by service providers allowing these apps to mushroom without due diligence. “Even when particular apps are flagged by security agencies, the response of the service provider is poor and laidback. Many of the apps that we flagged still continue to be on the Google Playstore allowing more people to be harassed and cheated,” the official said.
“A growing number of cyber crimes related to loan apps is a matter of concern and needs a well-coordinated effort to tackle the issue effectively,” Anoop A. Shetty, DCP, North East Division.
The City Cyber Crime Police have brought out a comic strip to inform the public and create awareness about the dangers posed by the loan apps. The Reserve Bank of India has also brought out a handbook, Raju and 40 thieves, for the same, but the loan apps continue to harass and defraud thousands everyday.
Some of the recent crimes reported :
R. Harish, from Baashankari , borrowed an instant loan of ₹58,000 after downloading a loan app and repaid ₹ 1.9 lakh. But he was getting threat messages and abuses everyday demanding more money.
A 19-year-old girl had morphed obscene videos sent to her family and contacts, demanding repayment of loan which she never borrowed.
Hrishikesh Radhakrishna, 20, a student from K.R. Puram received a link on his mobile. he clicked it accidentally while deleting the link. Soon the Alexandra Loan, the Kangaroo loan, and the Loan Seva apps were downloaded on his mobile and ₹45,000 was deducted from his bank account and transferred to three accounts. The accused wrote “Rapist” on the copy of his PAN card and circulated it to his friends and family, demanding repayment.
