Beware of Fraudulent Loan Apps: The Hidden Dangers and How to Protect Yourself

In India, there are many fraudulent loan apps out there, like Instant Loan Apps, which offer loans of amounts such as 1000 rupees or some limited amount.

Just think: why would they give you money without any formal process, unlike a bank? A bank is the correct institution for providing loans.

These kinds of apps ask for permission to access your contacts, gallery, and other data on your mobile. Many people click “Allow” without reading the permissions carefully. As a result, they can view and download your gallery images and contacts.

Once you pay money to these apps, they may blackmail you using deepfake images. They may threaten to share these images with all of your contacts. Some individuals have even been pushed to take their own lives because of this.

Please be aware of these scams! I’ll attach some articles related to these fraudulent activities below.

To learn more about the dangers of fraudulent loan apps and how they operate, here are some articles that shed light on this growing issue:

The Dark World of Illegal Loan Apps in India
Al Jazeera provides an in-depth look at the illegal loan apps thriving in India and the severe consequences they impose on borrowers.
Read more here
How to Identify Fake Loan Apps
Airtel’s blog offers useful tips on how to recognize fraudulent loan apps before you fall victim to them.
Learn more here
Warangal Police’s Advice on Online Loan App Frauds
The Warangal Police have issued a warning about the rise of online loan app frauds and how to avoid them.
Read the full advisory here
Man Dies by Suicide Over Rs. 2,000 Instant Loan App Debt
NDTV reports a heartbreaking case where a man, deeply impacted by a loan app, tragically took his own life.
Read more here
Tamil Nadu Man Dies by Suicide Due to Online Loan App Blackmail
India Today covers the tragic story of a Tamil Nadu man who took his life after being blackmailed by a fraudulent loan app.
Read more here