KOZHIKODE: Strapped for cash, Rohith (name changed), a native of Kozhikode, borrowed Rs 10,000 from a Chinese app-based lender for six days in April last year. He was to repay Rs 21,000 which included interest. For some reason, he delayed payment by one day. Much to his horror, he realised that the lending firm had accessed all his personal details, including files from his phone gallery, contacts and his information from the social media sites he used. Not only this, he was also threatened publicly and personally.
Hundreds like Rohith have fallen prey to such apps that provide users with loans. While some victims came forward and revealed their plight, some committed suicide after they were defamed. There were also those who gave into the companies’ demands and paid off the exorbitant amounts without a question.It was only when news broke of some people committing suicide after falling into the trap of such app-based loan schemes that charge high interests, that several people came forward and registered complaints with the police’s Cyber Cell. This prompted the department to launch a detailed probe.
“Many of such apps are not registered with the RBI and are illegally running the show in the country. In our investigation, we found that there are hundreds of such apps in Google Playstore and millions of people have downloaded them,” said Cyber Cell officials.
Shyam Prasad, a Cyber Cell consultant, said the investigation by the Hyderabad Cyber Cell found that such online loan apps have overseas links and have deployed dummy directors in India.“Such apps appear to be run mostly by Chinese nationals. It was after the colour prediction gaming apps scam was disclosed that the links between Indian companies and overseas companies, mostly in China and Indonesia, were exposed. Our company received several enquiries from people who had got trapped through such apps,” he said.
He said by trusting such apps, the user unwittingly gives access to all his/her personal documents and details to the company. These details are then used to threaten the user, he said.“Following cyber decency and being aware of such cyber crimes are the best ways to avoid becoming a victim to such apps,” said Shyam. After several cases were registered in cyber cells across the state, the Crime Branch was directed by state police chief Loknath Behera to investigate such online loan frauds.
A hi-tech crime inquiry cell has been deployed to assist the police with the probe and it has also been decided to take the help of the Karnataka, Tamil Nadu, Andhra Pradesh and Telangana police as they have already arrested several people, including foreigners, directly involved in the fraud.
Gambling -instant loan app connection
Online gambling boomed during the Covid-induced lockdown. However, it soon turned out to be a death trap for many. One of them was Kattakada native V H Vineeth who committed suicide after losing `21 lakh in an online rummy game.
A recent fraud committed by a government staff also revealed the links to online gambling. M R Bijulal, a senior accountant of the Vanchiyoor sub-treasury in Thiruvananthapuram, was suspended for transferring `2 crore to his account using the username and password of a retired treasury officer a few months ago. During questioning, he admitted to using the money for online gambling — which had become his hobby during the lockdown — since April 2020.
The app asks users to deposit money in an in-built ‘wallet’. However, the money starts disappearing as the game progresses. The claims by companies managing the apps, that over 30 million people play the game daily, also boosts users’ confidence and prompts them to deposit more money in the wallet.
“When players start losing money, messages from instant loan apps pop up, prompting many to try them out to get money and maintain the flow of their game. Eventually, users fall prey to both frauds,” said Sachin G, a native of Chelavur in Kozhikode who narrowly escaped the trap. “The moment I realised that the money in my account was starting to vanish, I took a break from the app,” said Sachin.
How to spot a fraud
“Several messages offering part-time jobs are circulating on WhatsApp. The language and phrases used in them may not be consistent. When we see it, we should realise that the messages are not from a reliable source. They will bear the name of famous firms. Ensure that the links are genuine before clicking. It is better to ignore such messages. A complaint can also be lodged at the nearest police or cyber police station,” said Ramachandran.
‘Make-money-from-home’ WhatsApp scam
When the pandemic took away their jobs, many people had to start job hunting on social media. That was when a new scam on WhatsApp began targeting such people. “Use your phones to earn up to J3,000 by spending just 10-30 minutes a day,” says one of such messages regularly doing the rounds on WhatsApp. “Several unsuspecting users who lost their jobs have fallen victim to this scam,” said Ramachandran N, a senior officer in Cyber Cell, Kozhikode.
“The users are offered J3,000 if they work from home for 30 minutes. The message comes with a link. However, any user who clicks the link loses valuable data, contacts and money. Fraudsters may get the bank account details of the users and the latter may get logged out of WhatsApp,” he said. Cyber experts with the Kerala Police say several youngsters and housewives have fallen prey to the scam. Though WhatsApp has taken several security measures to prevent online fraud, the fraudsters find new ways to outsmart the platform.
Though the Betting and Gaming Act, 1960, prohibits online gambling, apps misuse an SC statement which says a game that requires skills and intelligence does not fall under the purview of the Act.