Mumbai: Loan App frauds doubled in the city in 2022, states police data

Mumbai Police statistics have revealed that the number of cases of cybercrime involving loan frauds in 2022 were more than double the number of such cases registered in 2021.

Statistics revealed that 116 loan fraud cases were registered last year, as compared to 42 cases registered in 2021.

Some months ago, Maharashtra Cyber, the state’s nodal authority for cybercrime investigation, had asked Google’s US office to remove 69 apps suspected of using unethical practices to recover money from borrowers.

Further, the statistics revealed that of the 116 cases of loan fraud registered in 2022, only six cases were detected and 27 people arrested, while in 2021, of the 42 cases of loan frauds that were registered, only five were detected and 14 people arrested.

Some victims died by suicide because of harassment

In some cases, the victims of loan apps died by suicide, pushed to the brink by the constant harassment of recovery agents. In May 2022, Kurar resident Sandeep Koregaonkar ended his life after allegedly being harassed by loan sharks.

Before that, a 43-year-old woman had died by suicide in March, for the same reason. The Mira Bhayandar and Vasai-Virar police had then registered an abetment to suicide case against three mobile loan applications and 13 people who had been calling the victim and threatening to send her morphed photographs to her family and relatives if she failed to repay her loan.

It's illegal network, say cops

According to a senior police officer, “It is an absolutely illegal network, thriving on the ignorance of people and their inclination to make quick profit. These apps promise hassle-free loans and quick money and people are lured into falling prey to them, not realising that their phones get hacked, their data gets stolen and their privacy is totally invaded. The perpetrators can be traced through tracing of IP addresses, through the bank account details and telephone numbers through which they operate...”