Loan Apps : How they loot the customers ?

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Insta Loan fraud & mobile apps

These Insta Loan applications are developed in such a way that on installing these apps they get access to the contacts, mobile information and other data on the device. These applications collect the Id proofs, PAN card, KYC documents, and bank account details of the customers.

They check the genuineness of the documents and disburse small amounts in the form of a loan to their bank accounts by debiting the processing charges and GST ie, 25-30 per cent in advance. Loans are given for either seven days or 15 days.

After the due date, the company categorises the customers into various buckets - S-0, S-1, S-2, S-3, M2, M3, X etc. The customers in a lower bucket get a decent treatment but as the bucket category goes up the treatment gets harsher. The call centres of the company abuse the customers in filthy language and threaten them with dire consequences. They even go to the extent of accessing the contacts of the customers from their phone and start abusing and threatening the family members, relatives and friends with calls and messages. Using the stolen data, they threaten the customers with dire consequences like rape. In many cases, they created new WhatsApp groups using the victim’s phone book and sent lewd messages to the members.

They also blackmail innocent people by sending fake legal notices. Telecallers also suggest victims make the repayments by taking loans from their other loan applications. The customer falls into their trap by taking loans in the other loan applications as suggested by telecallers and end up paying huge amounts and get stuck in a never-ending cycle.

There are around 500 chinese such Apps, it’s time that India brings in a regulator for such Apps .

To protect yourself from such loan Apps fraud you must:

- use a different secondary mobile phone and instrument if you require a Insta loan .

- Never download any insta loan apps without verifying their licenses issued by government authorities.

- Go through the terms and conditions and verify the licenses of the companies that are offering loan and whether the licenses have been obtained from the concerned authorities like RBI, District Collector.

- Never download any app that asks to give access to the contacts, files, photo gallery, etc.




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