Rising Threat of Illegal Digital Lending Apps: Stay Vigilant and Seek Police Assistance if Needed

Tarun Karthick

Sri Vijaya Puram, 04 November 2024

A surge in complaints nationwide has raised alarm over illegal digital lending apps, which are reportedly exploiting vulnerable groups by offering short-term loans and microcredits at exorbitant interest rates. These apps, often operating outside the purview of the Reserve Bank of India (RBI), target low-income individuals, compelling them to provide access to sensitive personal data in exchange for loans.

Many of these digital lending platforms charge hidden fees and processing charges, trapping borrowers in a cycle of debt. The most concerning aspect is the demand for access to private information such as contact lists, location data, and media files like photos and videos. Once obtained, this data is often misused for blackmail and harassment, with some victims facing threats and intimidation.

These illegal apps heavily rely on bulk SMS campaigns, digital advertisements, chat messengers, and mobile app stores to lure unsuspecting borrowers on a large scale. With such deceptive practices becoming increasingly common, authorities have issued a strong advisory, urging citizens to avoid engaging with these platforms.

Authorities have emphasized that any individual who has fallen prey to blackmail, harassment, or fraud as a result of using these apps should report the incident immediately to the Cyber Cell in Sri Vijaya Puram, or the nearest police station. Timely reporting could help prevent further exploitation.

For those seeking assistance or information, the Cyber Crime Police Station of the Andaman and Nicobar Islands can be contacted through the National Helpline Number 1930 or the A&N Police Helpline at 9531856083. Victims can also file complaints via the official cybercrime portal at cybercrime.gov.in.

As the menace of illegal lending apps grows, staying informed and vigilant is essential. The public is advised to be cautious of loan offers that require personal data and to rely only on legitimate, regulated financial institutions for borrowing.