Vizag: Fake Loan Apps Fraud Targets Small Business Owners

Cyber fraudsters have adopted a new modus operandi to scam unsuspecting victims. In recent cases, fraudsters posing as loan providers through fake loan apps have targeted loan seekers, cheating them out of their money.

An individual, who chose to remain anonymous, had applied for a loan via a loan app. Afterwards, he received a WhatsApp call from a fraudster posing as an executive, who took his details and informed him that he was eligible for a loan of Rs 5 lakhs. Following this interaction, the anonymous victim was asked to pay money on various accounts on the pretext of different charges, looting him of Rs 2 lakhs. The final straw came when the victim was asked to submit an additional Rs 10,000, which he refused to pay, after which he lost contact with the cybercrooks.

After realising that he had been cheated, he complained to the cybercrime police. The cybercrime police station revealed that approximately 20 more people were duped by fraudsters posing as loan providers on illegal loan apps, which mainly target small business owners. These fraudsters assured them that they would be eligible for loans without requiring much documentation or a minimum income criterion.

The Vizag Police have issued a warning asking people not to apply for loans through unauthorised apps. Real banks or loan providers would never allow for loans without proper documentation, paperwork, and eligibility criteria.

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