Loan App Scam Caught in Hyderabad
Hyderabad Police have frozen 75 bank accounts holding ? 423 crore in connection with a multi-crore money lending scam.
Police in Telangana were alerted once three people died by suicide after being harassed and humiliated by money lenders. Authorities conducted multiple raids in Hyderabad and Gurgaon in Haryana, and arrested 16 individuals. Hyderabad Police have frozen 75 bank accounts holding ? 423 crore in connection with a multi-crore money lending scam - that charged victims up to 35 percent interest. These loans were given through 30 mobile phone apps that were not approved by the Reserve Bank of India (RBI). Officials say the call centres employed hundreds of youngsters trained to lure customers, entrap them into borrowing successive sums from multiple apps, and were trained to "abuse, defame and blackmail" victims in order to recover borrowed money and the interest.
In three call centres alone over 1,000 people were employed, many of whom were college graduates paid between ? 10,000 and ? 15,000 per month. Officials say such apps must be investigated in various cities of India to understand how big the scam is. The Apps route the money through shell companies, multiple bank accounts, payment gateways and digital wallets to avoid detection. RBI cautioned individuals and small businesses against falling prey to unauthorised websites and mobile apps that promised hassle-free loans.
