Tarun Karthick
Port Blair, 30 December 2023
Amidst a surge in complaints nationwide, authorities have raised an alarm regarding the proliferation of illegal digital lending apps. These platforms, offering short-term loans or micro-credits, are preying on individuals by imposing exorbitant interest rates and undisclosed charges, prompting concerns over their unregulated status.
Many of these apps might not fall under the category of Regulated Entities (RE) by RBI, leaving users susceptible to financial exploitation. Particularly targeting vulnerable and low-income groups, these apps coerce borrowers into granting access to highly sensitive personal data such as contacts, location, and multimedia content as a prerequisite for obtaining loans.
What raises further alarm is the misuse of this confidential information for malicious intents, including blackmail and harassment. The modus operandi of these illegal apps encompasses widespread utilisation of bulk SMS campaigns, digital advertisements, chat platforms, and app stores.
In response to this alarming trend, an advisory has been issued urging all citizens to refrain from engaging with such illicit lending apps to avoid falling victim to financial exploitation and data privacy breaches. Authorities have underscored the importance of immediate reporting in instances of fraud, blackmail, or harassment stemming from the use of these applications.
Individuals who have been affected are strongly advised to report such incidents promptly to the Cyber Cell, CID in Port Blair, or the nearest Police Station. Additionally, they can seek assistance by contacting the Cyber Helpline at 1930 or utilising the Cyber Crime registration portal at cybercrime.gov.in.