The fatal lure of instant loan apps
2 years, 6 months ago

The fatal lure of instant loan apps

The Hindu  

“Mummy, I am leaving.” This is how Amit Yadav, 35, a mechanic from Madhya Pradesh’s Indore, concluded his note on August 23 before adding the words “ek fakir insaan ” below his name and signature. In response, Union Finance Minister Nirmala Sitharaman said the Central government had taken cognisance of such cases where digital loan apps “originating from one particular country” were being misused to harass citizens and extort money. “Our family has been laughed at, we cannot afford to lose our money and the little dignity we have in society.” A senior police officer of Delhi Police’s Cyber Cell says there has been a rise in cases of harassment related to Chinese loan apps since last year. “It is a network that doesn’t just operate for Chinese loan apps but for all cyber frauds,” the officer says. According to Maharashtra Police’s Cyber Cell, Chinese loan apps have amassed ₹160 crore in the past two years and a lookout notice has been issued against the Chinese kingpin.

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History of this topic

Delete these 15 fake loan apps now to protect your bank account, over 80 lakh users affected
4 months ago

Delete these 15 fake loan apps now to protect your bank account, over 80 lakh users affected

India TV News  

India ranks as the number one country for downloading fake apps, according to a recent report by McAfee. McAfee has identified 15 specific fake loan apps that have been downloaded by millions—about 8 million users in total—mostly from the Google Play Store. These fake loan apps often ask for various permissions when installed, such as access to your calls, messages, …

Indian consumers still falling prey to unlawful loan applications: Report
11 months, 2 weeks ago

Indian consumers still falling prey to unlawful loan applications: Report

India TV News  

One-third of the high-confidence customers have limited knowledge about their digital loans in India. A recent report from the Fintech Association for Consumer Empowerment shared the insights from a customer survey which was conducted between December 2023 and January 2024 to systematically understand the gaps in users' approaches and knowledge about Digital Lending Applications in India and it further drives …

Google removed over 2200 fraudulent loan apps from Play Store
1 year, 1 month ago

Google removed over 2200 fraudulent loan apps from Play Store

Deccan Chronicle  

New Delhi: The government on Tuesday informed Parliament that Google has suspended or removed more than 2,200 fraudulent loan apps from its Play Store between September 2022 and August 2023. “The government is constantly engaged with the Reserve Bank of India and other regulators and stakeholders concerned to control fraudulent loan apps,” minister of state for finance Bhagwat K Karad …

Fraudulent loan apps proliferate in India. But how big of a problem are they?
1 year, 3 months ago

Fraudulent loan apps proliferate in India. But how big of a problem are they?

Firstpost  

The Centre has ordered popular social media platforms and other websites not to host The Centre is cracking down on fraudulent loan apps. The government on Wednesday ordered social media platforms and other websites not to host Union minister Rajeev Chandrasekhar said, “One of the areas we are now cracking down on is advertising of fraudulent loan apps that many …

The dark world of illegal loan apps in India
1 year, 3 months ago

The dark world of illegal loan apps in India

Al Jazeera  

Borrowers are harassed by reps of lending apps who abuse, threaten and blackmail them by accessing their contacts, pics. Kreditbe’s name is a rip-off of a legitimate loan app called KreditBee, a common modus operandi for these illegal loan apps which often choose names similar to reputable brands to create a sense of authenticity. In the last three years, Loan …

Google pulls 17 fraudulent Android loan apps targeting Indian users
1 year, 3 months ago

Google pulls 17 fraudulent Android loan apps targeting Indian users

India TV News  

Google pulls 17 fraudulent Android loan apps targeting Indian users As per the privacy policies of these apps, if those permissions are not granted, the loan will not be reimbursed to the users. Researchers said that they have found 18 fraudulent loan apps on Play Store that personate themselves as genuine personal loan service providers. ESET researcher Lukas Stefanko, who …

7 reasons why it is essential to stay cautious of digital lending apps
1 year, 8 months ago

7 reasons why it is essential to stay cautious of digital lending apps

Live Mint  

With the rapid advancement of technology and the proliferation of smartphones, the fintech industry in India has witnessed significant growth in recent years. Predatory lending practices Digital lending apps often target vulnerable individuals who may have limited access to formal banking services or who urgently require funds. Data privacy and security concerns Digital lending apps typically require borrowers to share …

How fake loan apps extort money and push people into debt traps
1 year, 8 months ago

How fake loan apps extort money and push people into debt traps

The Hindu  

July 13, 2023 08:56 pm | Updated July 14, 2023 01:07 pm IST - Bengaluru Bengaluru Ramesh Reddy, 35, borrowed ₹2 lakh for a couple of weeks from a money-lending app a month ago to tide over a crisis in his business. Good Bye.” Flood of apps Loan apps advertised on social media platforms, like Facebook and Instagram, are an …

Apple removes 6 loan apps from App Store: Read how predatory loan apps target the vulnerable and how to stay safe
1 year, 8 months ago

Apple removes 6 loan apps from App Store: Read how predatory loan apps target the vulnerable and how to stay safe

Op India  

Apple has reportedly removed six predatory personal loan apps from App Store in India in the first week of July 2023. A user reviewed the app on App Store and said, “I borrowed an amount in a helpless situation and a day before repayment due date I got some messages with my pic and my contacts in my phone saying …

Bengaluru cops book 15 loan apps for hacking into borrower’s phone
1 year, 8 months ago

Bengaluru cops book 15 loan apps for hacking into borrower’s phone

The Hindu  

Bengaluru Bengaluru East Cyber Crime, Economic Offences and Narcotics Police have booked 15 loan apps for hacking into a mobile phone of a borrower, and morphing pictures stolen from the cell phone. The police have booked Easy Money Loan App, Salarypls, Easy Loan, Cash Me, Pocket Me, Get Rupee, Incash, Money, Rainbow Money, Magic Loan, Homecash Delhi Credit, Shinny Loan, …

Digital Loan Apps in India denied access to user location and call logs: Know Google’s latest guidelines
1 year, 10 months ago

Digital Loan Apps in India denied access to user location and call logs: Know Google’s latest guidelines

India TV News  

Digital loan apps have emerged as a troublesome issue in recent years, exploiting individuals looking for quick and easy money. The companies responsible for these apps no longer have access to sensitive data, including contacts, photos, videos, location information, and call logs from users' devices. Moreover, Google is now demanding that all legitimate app companies provide supporting documentation to verify …

Another Chinese loan app extortion racket busted in capital; 18 apprehended
1 year, 11 months ago

Another Chinese loan app extortion racket busted in capital; 18 apprehended

The Hindu  

The Delhi Police has busted a call centre, which was functioning under the guise of a finance company, and apprehended 18 persons for allegedly extorting money from people through a Chinese loan app, senior officers said on Friday. The DCP said that during the interrogation, Amit revealed that he and Khan used to work at EMI loan reminder call centres …

Chinese loan app case: ED files chargesheet against Razorpay, others
2 years ago

Chinese loan app case: ED files chargesheet against Razorpay, others

Live Mint  

The Enforcement Directorate Friday said it has filed a charge sheet against payment gateway Razorpay, three fintech companies controlled by Chinese nationals and as many NBFCs and some others in a money laundering probe linked to Chinese loan apps which allegedly cheated numerous people. The accused entities include fintech companies Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited …

Chinese Loan Apps Exploited Covid Crisis, Weak Regulatory Framework to Cheat Millions of Indians, Says ED
2 years, 1 month ago

Chinese Loan Apps Exploited Covid Crisis, Weak Regulatory Framework to Cheat Millions of Indians, Says ED

News 18  

Chinese loan apps took advantage of the Covid crisis in India and cheated millions of gullible people who were in a financial mess. The central investigating agency has highlighted how the Chinese apps took advantage of a weak regulatory framework in India to make mind-boggling profits. Indian investigating agencies are keeping an eye on loan apps like Money View, Krazy …

India to ban 138 betting apps, 94 loan-lending apps with Chinese links
2 years, 1 month ago

India to ban 138 betting apps, 94 loan-lending apps with Chinese links

Deccan Chronicle  

New Delhi: In a bid to check fraudulent practices by some 'fake' mobile applications or apps in India, the government has initiated the process to ban 138 betting apps and 94 loan-lending apps with Chinese links on 'urgent and emergency' basis. It is also learnt that the action is being taken by the ministry of electronics and information technology on …

Centre to ban 138 betting apps, 94 loan lending apps with Chinese links
2 years, 1 month ago

Centre to ban 138 betting apps, 94 loan lending apps with Chinese links

The Hindu  

In a major crackdown, the Central government has initiated the process to ban and block 138 betting apps and 94 loan lending apps with Chinese links on an “urgent” and “emergency” basis, top government sources said on February 5. States like Telangana, Odisha and Uttar Pradesh as well as central intelligence agencies had then asked the Union Home Ministry to …

How the Chinese use Indians to run investment scams
2 years, 4 months ago

How the Chinese use Indians to run investment scams

Live Mint  

MUMBAI : It was a WhatsApp forward she received from a friend in April that proved to be the undoing. While there is little online trace of Loxam anywhere or any evidence that it was owned by a registered company, the Hyderabad police said they found that the money of the complainant was deposited in an IndusInd Bank account in …

Applying for a loan via a digital lending app? 6 key things to remember
2 years, 5 months ago

Applying for a loan via a digital lending app? 6 key things to remember

Live Mint  

Raising a tiny amount of loan via a mobile application is nothing short of overly convenient, but is sadly riddled with a set of risks. A recently-released statement released by the Finance Ministry stated that the “predatory recovery practices involving blackmailing, criminal intimidation, etc.” by these illegal loan app providers were a concern. Stay away from instant disbursals: Experts also …

Andhra Pradesh: Probe into loan app cases finds links with servers operating from Pakistan, China
2 years, 6 months ago

Andhra Pradesh: Probe into loan app cases finds links with servers operating from Pakistan, China

The Hindu  

The police have sounded alert as the investigation into the loan app fraud and harassment cases have found links with servers operating from Pakistan, China, Bangladesh, Nepal and other countries. “The investigating officers have found that the addresses of these loan app operators and the WhatsApp numbers used in the transactions have links with Pakistan, Bangladesh, China and Nepal. The …

India preparing whitelist of legal loan and finance apps, will ban others soon
2 years, 6 months ago

India preparing whitelist of legal loan and finance apps, will ban others soon

India Today  

Illegal loan apps are flooding the Google Play store and Apple App store. On Friday, the Finance ministry expressed concerns over the increasing number of illegal loan apps on the Google Play store and Apple app store. The decision comes after the union Minister for Finance & Corporate Affairs Nirmala Sitharaman chaired a meeting to discuss the various issues related …

What is the Chinese loan app case? Key points about ED raids
2 years, 6 months ago

What is the Chinese loan app case? Key points about ED raids

Live Mint  

On September 3, the Enforcement Directorate announced that six online payment gateway locations in Bengaluru had been raided due to alleged irregularities in mobile app-based loans that were "managed" by Chinese individuals. The federal probe agency also said that during the raids, it has seized ₹17-crore worth funds kept in "merchant IDs and bank accounts of these Chinese persons-controlled entities". …

Pay Workers in Cash, Crypto Route, Foreign Servers: Sly Ways of Lending App Kingpins - News18
2 years, 7 months ago

Pay Workers in Cash, Crypto Route, Foreign Servers: Sly Ways of Lending App Kingpins - News18

News 18  

Predatory lending by instant loan apps has led to a spate of suicides in several states. PART 1 | India May Ban 300 Apps to Plug the ‘Sleaze Route’ of Predatory Lending The whole architecture of these predatory apps is built in a way so that the Chinese nationals who started everything can escape easily without leaving any footprint, officials …

Entities in Other States Behind Online Loan Frauds, Police Taking Strict Action, Says Kerala Govt
2 years, 7 months ago

Entities in Other States Behind Online Loan Frauds, Police Taking Strict Action, Says Kerala Govt

News 18  

The Kerala government on Monday said that incidents of people being cheated after availing loans through online apps are being reported in the state and the police was taking strict action against the entities involved in such activities even though they are operating from other states. Chief Minister Pinarayi Vijayan said in the assembly that according to information received by …

ED raid on loan apps reveals strong Chinese presence in crypto crimes
2 years, 7 months ago

ED raid on loan apps reveals strong Chinese presence in crypto crimes

The Hindu  

Published : Aug 26, 2022 16:45 IST The Enforcement Directorate, still preoccupied with unearthing corruption and money laundering among opposition politicians, has decided to turn its attention to those involved in the crypto business in the country as well. Entities engaged in predatory lending deposited funds in the rupee wallets of Yellow Tune, which were then converted into cryptocurrency tokens …

When Lending Apps Bully Victims, Debt Trap Sometimes Becomes Deathtrap - News18
2 years, 7 months ago

When Lending Apps Bully Victims, Debt Trap Sometimes Becomes Deathtrap - News18

News 18  

Predatory lending by instant loan apps has led to a spate of suicides in several states. A few months ago, 28-year-old Rajkumar living in Hyderabad also ended his life after facing exactly the same humiliation, which is the modus operandi of Chinese loan apps. PART 5 | Govt Begins Crackdown on Chinese Loan App Companies in Bengaluru, Gurugram, Hyderabad Even …

Google removes over 2,000 loan apps from India Play Store since Jan
2 years, 7 months ago

Google removes over 2,000 loan apps from India Play Store since Jan

Deccan Chronicle  

NEW DELHI: Google has removed over 2,000 loan apps from India Play Store since January this year for violating terms, misrepresenting information, and questionable offline behaviour, a senior official said. Saikat Mitra, Senior Director and Head of Trust and Safety, Google APAC said the company is commited to complying with regulations in all jurisdictions it operates in, and termed online …

Google Play got rid of 2K controversial personal loan apps- Know more
2 years, 7 months ago

Google Play got rid of 2K controversial personal loan apps- Know more

India TV News  

Google has stated that it has started taking off 2,000 controversial personal loan apps from its Play Store in India in the January-June period after consulting with law enforcement agencies. The eligibility includes a copy of their license by the Reserve Bank of India, and a declaration that they are not directly engaged in money lending activities and are only …

India May Ban 300 Apps to Plug the 'Sleaze Route' of Predatory Lending - News18
2 years, 7 months ago

India May Ban 300 Apps to Plug the 'Sleaze Route' of Predatory Lending - News18

News 18  

Predatory lending by instant loan apps have led to a spate of suicides in several states. PART 3 | When Lending Apps Bully Victims, Debt Trap Sometimes Becomes Deathtrap Traced to China and suspected to be one of the biggest money laundering scams, the apps are also being watched closely by the Enforcement Directorate, Serious Fraud Investigation Office, Intelligence Bureau, …

Despite awareness and measures to curtail the menace, loan app scams are on the rise in Bengaluru
2 years, 8 months ago

Despite awareness and measures to curtail the menace, loan app scams are on the rise in Bengaluru

The Hindu  

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. At least one in 10 cyber crime cases being reported in the city are related to harassment by loan apps, said senior police …

Under RBI’s ombudsman scheme, 7,813 complaints received against digital apps and recovery agents
2 years, 8 months ago

Under RBI’s ombudsman scheme, 7,813 complaints received against digital apps and recovery agents

The Hindu  

As many as 7,813 complaints against banks and non-banking finance companies, pertaining to digital lending applications and recovery agents, were received under the Integrated Ombudsman Scheme of the Reserve Bank of India during the last financial year, according to the Central government. In a written reply to a question from Lok Sabha member Aparajita Sarangi, the Minister of State for …

Look out notice issued against Chinese national involved in loan app scam
2 years, 8 months ago

Look out notice issued against Chinese national involved in loan app scam

The Hindu  

The Bureau of Immigration has issued a look out circular against Liu Yi, a Chinese national, for his alleged involvement in running an illegal digital loan mobile app case in India. Yi used to run many illegal digital loan apps in India such as KOKO Loan, JOJO Loan, Golden Lightening Loan and Silver Kredit Loan. Obscene messages and indecent pictures, …

Instant digital loan apps become easy trap for cheating, harassment
2 years, 11 months ago

Instant digital loan apps become easy trap for cheating, harassment

The Hindu  

A man from Coimbatore recently downloaded an instant loan app after he faced financial emergency. Another victim, a woman, availed a small loan from a micro-credit app from which she was redirected to many similar digital instant loan apps. In the latest case, a man from Coimbatore installed one of the instant loan apps and submitted certain details for a …

RBI finds 600 illegal lending apps operating in India
3 years ago

RBI finds 600 illegal lending apps operating in India

India Today  

A Reserve Bank of India Working Group on digital lending has identified a whopping 600 illegal lending apps operating in India in the last year. As per RBI, “Sachet”, a portal established by RBI against unregistered entities, has received approximately 2,562 complaints against digital lending apps between the start of January 2020 to end of March 2021. In December 2020, …

Govt issues warning, says installing unknown lending apps may compromise data
3 years, 3 months ago

Govt issues warning, says installing unknown lending apps may compromise data

Hindustan Times  

The central government has advised people to stay away from instant mobile application-based lenders, which could land them in trouble. Further, the Cyber Dost Twitter handle has asked people to be vigilant before installing unknown applications on their mobile phone that provide loan. These RBI too has been cautioning people against loans being offered by unauthorised digital platforms, mobile applications …

Beware! 600 fake money lending apps operating in India, says RBI report
3 years, 3 months ago

Beware! 600 fake money lending apps operating in India, says RBI report

India TV News  

Highlights As many as 600 illegal money lending apps are operating in India, says RBI These apps are available on multiple app stores for Android users These apps can search through key words like loan, instant loan, quick loan, etc Fake Money Lending Apps in India: As many as 600 illegal money lending apps are operating in India, a report …

Illegal loan firm run by Chinese nationals busted in Bengaluru
3 years, 4 months ago

Illegal loan firm run by Chinese nationals busted in Bengaluru

Op India  

Karnataka Police have busted a loan racket run by two Chinese Nationals who were involved in fraudulent money transactions and gave loans to people at exorbitant processing fees and unreasonably high interest rates. #Karnataka police have busted a racket allegedly run by #Chinese nationals, who gave loans at exorbitant rates and harassed and humiliated the customers for ‘violation’ of laws, …

RBI report finds 600 illegal loan apps operating in India
3 years, 4 months ago

RBI report finds 600 illegal loan apps operating in India

The Hindu  

A Reserve Bank of India Working Group on digital lending, including lending through online platforms and mobile apps, has stumbled upon more than 600 illegal loan apps operating in India. In course of its filed work to prepare a detailed report on digital lending and to suggest recommendations, the WG found out the existence of over 1,100 unique loan apps …

Instant, app-based loans could lead you to debt traps
3 years, 6 months ago

Instant, app-based loans could lead you to debt traps

Live Mint  

The adoption of technology amid covid-19 in the Indian financial ecosystem is on an overdrive. The promise of real-time access to loans makes instant app loans more attractive than personal loans from established banks, especially for urgent requirements. Loan sharks: Regulators in advanced economies such as the UK and the US have issued strict guidelines against loan sharks offering instant …

Facebook, Xiaomi eye $1 trillion mkt as they plan digital loans
3 years, 7 months ago

Facebook, Xiaomi eye $1 trillion mkt as they plan digital loans

Al Jazeera  

Several big tech firms are now focusing on digital payments in India as online transactions surged during the pandemic. India’s digital loan market is becoming a battleground for companies from Facebook Inc. to Xiaomi Corp., seeking a foothold in what’s set to be a $1 trillion industry. The social media giant’s foray into India coincides with Xiaomi’s, the Chinese maker …

ED attaches assets worth Rs 76 Crore in Chinese loan app scam
3 years, 10 months ago

ED attaches assets worth Rs 76 Crore in Chinese loan app scam

India Today  

The Enforcement Directorate has attached money to the tune of Rs 76.67 crore, lying in various bank accounts and payment gateways, in connection with Chinese loan application companies and their Indian associates, officials said. The amount attached by ED pertains to seven companies, out of which three are fintech companies -- Mad Elephant Network Technology Private Limited, Baryonyx Technology Private …

Government planning crackdown on apps offering cash loans online
4 years ago

Government planning crackdown on apps offering cash loans online

Hindustan Times  

The government is planning a crackdown on apps offering cash loans, exploring new regulatory options that could ban coercive recovery procedures, cap the rate of interest and require mandatory registrations after increasing reports from around the country of people falling into debt traps, with at least 12 cases leading to suicide since late last year. According to a 2007 report …

China's dirty business exposed: 12, including 2 Chinese nationals, arrested in loan app case
4 years, 2 months ago

China's dirty business exposed: 12, including 2 Chinese nationals, arrested in loan app case

India TV News  

A couple of days after a Chinese national was arrested in Hyderabad in connection with the on going probe against the app-based lenders, the Delhi Police on Friday made further breakthrough in the probe. The Cyber Cell busted a gang involved in duping people through Chinese loan apps. As many as 12 people, including two Chinese nationals, were arrested. Acting …

Dummy directors, identical websites, lucrative rewards: The making of a Chinese betting shark
4 years, 2 months ago

Dummy directors, identical websites, lucrative rewards: The making of a Chinese betting shark

India Today  

Hundreds of complaints and several suicides have forced police in different cities to crack down on Chinese loan apps. His lawyer Pankaj Singh alleges that his client was framed in the case by Chinese directors of firms that are now also said to be linked to the mobile loan lending scam. How Chinese loan apps work Chennai resident Nataraj, 35, …

Instant Loan Apps Cases: Chinese National Among Two Arrested in Maharashtra
4 years, 2 months ago

Instant Loan Apps Cases: Chinese National Among Two Arrested in Maharashtra

News 18  

Two people, including a Chinese national were arrested on Wednesday in connection with the ongoing probe by police against instant app-based lenders, accused of harassing borrowers over repayment. "The arrested Chinese national came to India in July 2019 on a business visa and worked as a representative on behalf of three Chinese nationals, who are directors of some micro finance …

Lending apps thrive on India's Google Play despite policy violations
4 years, 2 months ago

Lending apps thrive on India's Google Play despite policy violations

The Hindu  

At least 10 Indian lending apps on Google's Play Store, which have been downloaded millions of times, breached Google rules on loan repayment lengths aimed at protecting vulnerable borrowers, according to a Reuters review of such services and more than a dozen users. "Predatory loan apps with high processing fees, short tenures and steep penalty charges on default are leading …

Loan apps remain on India Google store despite violations, deaths
4 years, 2 months ago

Loan apps remain on India Google store despite violations, deaths

Al Jazeera  

Indian officials are investigating dozens of lending apps following the suicides of at least two borrowers in the past month. At least 10 Indian lending apps on Google’s Play Store, which have been downloaded millions of times, breached Google rules on loan repayment terms aimed at protecting vulnerable borrowers, according to a Reuters news agency review of such services and …

Sources of funds for loan apps under lens
4 years, 2 months ago

Sources of funds for loan apps under lens

Live Mint  

The Reserve Bank of India has begun looking into the sources of funds for app-based instant loan companies accused of harassing vulnerable borrowers, said a person aware of the matter. According to this person, RBI is likely to launch an investigation into whether some banks allowed funds to flow into these apps without conducting mandatory due diligence. The RBI scrutiny …

Deep Dive | How China-based money lending apps are devastating gullible Indian borrowers
4 years, 2 months ago

Deep Dive | How China-based money lending apps are devastating gullible Indian borrowers

India Today  

China saw a spate of incidents involving 'loans for nudes' scams in 2016. Such mobile apps are hardly ideal as they involve exorbitant interest rates and like the earlier example, access the private data from the borrowers' phone. INDIAN SECURITY AGENCIES GET CRACKING The Central Crime Branch of the Chennai Police on Sunday arrested two Chinese nationals in Bengaluru for …

Financial fraud | Usury travels online, thrives during pandemic
4 years, 3 months ago

Financial fraud | Usury travels online, thrives during pandemic

The Hindu  

Usurious moneylending, or kandhu vatti, has always been a nightmare in Tamil Nadu. “When he/she defaults on payment, they and their contacts start getting messages and calls that are sometimes abusive and threatening in nature,” said a police officer. “They started to impose ₹100 to ₹200 as interest for every day after the stipulated seven days,” Mr. Puthiyavan said. These …

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