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Loan apps: How to protect yourself from such scams

Credit Card Scams

Loan apps: How to protect yourself from such scams

NEW DELHI: Lending apps, which lend small sums between Rs 2,000 and Rs 10,000, targeting low-income and financial unsavvy Indians, are on the rise again despite more than 200 such apps being removed from the Google Play store already. Such apps are dangerous as the harassment by recovery agents have driven many to suicide in the recent past.
In 2021, at least six people committed suicide in Hyderabad alone due to harassment by agents. As many as 50 cases of harassment were reported from Hyderabad, Cyberabad, and Rachakonda police commissionerates. Last week a man in Mumbai ended his life after his morphed images were circulated on Whatsapp by alleged recovery agents of a loan app. In another such incident, 24 year old Anurag Singh fell prey to one such loan app, which accessed his contact list after he installed it on May 1 to enquire about what loan he was eligible for. Without his consent, the app transferred Rs 3,805 to his bank account the same day. On May 6, Singh began receiving SMSes and threat calls demanding he repay the loan along with “interest” of Rs 7,000 for just six days.
In Hyderabad’s Begumput, 27-year-old Suman found his morphed images were doing the rounds on his family’s emails while he was being branded as a paedophile for raping a 5-year-old by representatives of an instant loan app from whom he had borrwed Rs 4,000 in the past. Though he had returned the amount, the app had labeled him as a defaulter, and harrasment started when he refused to…

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