Hyderabad Police warn public against surge in fraudulent loan app scams
HYDERABAD: The Cyber Crime Unit of Hyderabad City Police has issued a public advisory warning citizens against a rise in frauds linked to illegal loan applications offering instant credit with minimal documentation.
According to the advisory, fraudsters lure victims through advertisements promising “minimal document verification”, “loan approval with only Aadhaar”, or “instant loans within minutes”. After disbursing small amounts, they allegedly impose exorbitant interest rates and hidden charges.
Police said these unauthorised apps often seek access to users’ mobile contacts, photographs and personal data. The data is later misused to threaten, harass and send defamatory messages to victims and their contacts to extort money.
How the fraud operates
Investigators said fraudsters promote fake loan apps through social media, SMS and online advertisements. Victims are persuaded to download the apps, which seek access to contacts, gallery, messages and other sensitive information.
Once installed, a small loan amount is credited quickly. However, the repayment tenure is usually short, often about seven days, with excessive interest and processing fees.
Police noted that the payable amount may increase unexpectedly due to undisclosed charges. In some cases, additional loans are credited without the victim’s consent, trapping them in a cycle of repayment.
If repayment is delayed, fraudsters allegedly call or message the victim’s contacts, circulate morphed or defamatory images, and threaten legal action. Victims may also receive repeated calls from multiple numbers, causing mental stress and forcing payments out of fear.
Safety measures advised
The Cyber Crime Unit advised citizens to treat “loan with only Aadhaar” offers as a red flag, noting that legitimate banks and non-banking financial companies (NBFCs) conduct proper Know Your Customer (KYC) and income verification.
People have been urged to download loan applications only from Reserve Bank of India-authorised banks or trusted NBFCs, and to check app permissions carefully. Police cautioned against sharing Aadhaar, Permanent Account Number (PAN), bank details, one-time passwords (OTPs) or Unified Payments Interface (UPI) PINs with unknown apps or individuals.
Victims have been advised not to panic in response to threats and to seek legal help instead of yielding to intimidation. Police also asked the public to preserve chats, transaction details, screenshots and caller information before deleting any suspicious app or messages.
Citizens can report suspected frauds to the National Cybercrime Helpline at 1930 or file complaints online at cybercrime.gov.in. The unit also shares cyber awareness updates on its official social media handles.
V Aravaind Babu, Deputy Commissioner of Police, Cyber Crimes, Hyderabad, issued the advisory.
