10 Horrifying Facts about Instant Loan App Scams Involving Blackmail, Suicides, and Nude Photos

Online scams have been around for a while, starting with the infamous ‘Nigerian Prince’ spam emails that aimed to deceive innocent individuals. However, scammers have become more malicious and cunning in recent times. A prime example is the instant loan app scam, where these apps promise quick and convenient loans but charge exorbitant interest rates. While not all of these apps are predatory, many are. The scammers behind them employ various tactics such as harassment, humiliation, and blackmail to force victims into repaying the money with an outrageously high interest rate. To safeguard yourself, it is crucial to understand their methods and follow these 10 points.

The BBC recently conducted an undercover investigation in India to uncover the modus operandi of these cybercriminals. The report highlights that up to 60 Indians have been driven to suicide after being unable to deal with constant harassment, abuse and blackmail.

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Quick loan application scam – 10 points

1. These apps offer loans without any diligence or paperwork and provide the money within minutes, making them a lucrative proposition for those in dire need of financial assistance. However, all that glitters is not gold.

Although such scam apps pay out the loan amount after you install it and fill out a basic digital form, the money received is often much less than what was promised. The application does not reveal it beforehand, but explains it later as processing costs and other operating costs.

2. But malicious activity happens in the background as many such apps often steal users’ photos, their contacts and even their ID cards from their phones. But this is only step 1 of their entire process and they are later used to extort money from victims.

3. The average loan period for such applications is about 7-10 days. However, when the borrowers are unable to repay such a large amount on time, or even if they do, the scammers behind the operation take the next step. According to a BBC report, the apps “share this information with a call centre, where young gig economy agents, armed with laptops and phones, are trained to harass and humiliate people into paying back”.

4. The BBC highlighted the story of Bhoomi Sinhaa, a Mumbai-based real estate lawyer and widow raising her daughter alone, who fell in love with such payday loan apps. When she didn’t pay back the amount in 7 days, she started getting incessant calls from scammers who started harassing her continuously, hurling abuses and even blackmailing her by contacting her contacts as well.

Even after she paid back, some loan applications harassed her, even sharing a Photoshopped nude image on a pornographic website.

5. This kind of harassment can be extreme for anyone. Many suffer mental breakdowns, panic attacks and acute anxiety from the constant ringing and buzzing of the phone. The BBC reports that up to 60 people in India have been forced to commit suicide after enduring months of such abuse.

6. Shockingly, such scams operate not only in India but in as many as 14 different countries. Organizations running such scams on a large scale openly use shame and blackmail to force victims to give up all their savings.

7. Due to the nature of cheating, most people are ashamed to talk about it and seek help from either family, friends or authorities. And when cybercriminals also start calling them, the pressure increases manifold.

8. However, it is not too difficult to protect yourself from such scams. You just need to not trust any app that promises effortless money without due diligence. Even if you need a loan from loan apps, always check if it is a NBFC registered entity or not. Companies not registered with NBFC are not eligible to disburse loans.

9. If the loan application is not registered, you should stay away from it. In fact, don’t even download it. They can still extract your information without a loan. Always prefer only banks and similar institutions if you need a loan.

10. But if you have already taken out a loan from such a loan application, be sure to report it immediately to the nearest police station. Scammers use shame as a weapon against you, so don’t give in to their pressure and always turn to the authorities who can protect you.

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