THIRUVANANTHAPURAM: The death of BDS student Nithin Raj has shone the spotlight back on illegal loan apps, specifically how they extort victims using personal data accessed from their own devices.
Nithin, a first-year student of Kannur Dental College, Anjarakandy, ended his life on April 10. A probe revealed he had borrowed money from a predatory loan app and, a day before his death, received threat calls from the app’s operators.
As per the police data, around 15,000 people from Kerala lodged petitions against illegal loan apps via the National Cyber Crime Reporting Portal (NCRP) in the past three years. However, only 284 complainants chose to go ahead with their pleas and get FIRs registered.
More worryingly, police sources said they were able to establish links between at least seven suicides in the last three years and loan app scams. A whopping Rs 70 crore was lost during the three-year period and only Rs 28 crore, or 40%, could be retrieved. Arrests were made in some instances, including in Nithin’s case, while the investigation is continuing on the other complaints.
Cyber cops said the scammers mostly targeted those working in informal sectors and having low income. Around 32% of the loan app scam victims were those employed with private firms, while homemakers followed at 20.18%. Around 9.79% of the targets were businessmen who have to maintain cash flow to stay afloat. Around 4.37% were students.
‘Loan apps can access personal files, borrowers put reputation as collateral’
“Those downloading loan apps from APK (Android Package Kit) files were found to be more vulnerable. By allowing the loan apps access to private documents, including contacts and photos, borrowers put their reputation as collateral,” said a senior police official.
“Even those who downloaded the app and deleted it without borrowing money are getting threat calls as their data has already been siphoned,” the official added.
The loan apps decide the ceiling of loan amount on the basis of the extent of access they get to the borrower’s personal
data. The cop said victims are forced to pay an exorbitant amount to close the loan. “If they fail, they are subjected to severe cyber bullying. Morphed images and videos of victims are made and threat calls, from both foreign and virtual numbers, placed to persons in their contact list,” said the officer, adding that the app operators receive money via mule accounts.
This year, the Chakkarakkal police in Kannur had identified a Noida-based call centre that ran a similar loan app scam and employed 40 people. Three people were arrested.
3-year wrap
1,836 loan apps banned by cops
5,317 websites involved in such scams taken down
284 FIRs filed
Rs 70 crore lost, Rs 28 cr recovered
Every third loan app victim a private employee, every fifth a homemaker
Insurance agents, techies and bank staff least vulnerable
