An automobile engineer recently lost ₹4.37 lakh after responding to an online loan offer. The case shows how quickly digital lending can turn risky when borrowers encounter fake apps, phishing links or unscrupulous agents posing as legitimate lenders.
How the scam typically works
- Fraudsters place attractive loan offers on social media or messaging apps.
- Victims are asked to download a mobile app or click a link and share KYC details.
- Scammers request OTPs, bank access or upfront “processing” fees and then drain accounts or demand illegal repayments.
- After disbursal, aggressive harassment and threats are used to extract more money.
Why digital lending can be risky
Online loans are convenient, but the ecosystem includes many legitimate lenders and some bad actors. Fake platforms often copy the look of real lenders, making it hard to tell the difference at first glance. Quick approvals and low documentation requirements may hide excessive fees and illegal practices.
Practical precautions borrowers should take
- Verify the lender: Check the lender’s credentials and customer reviews. Use official websites or registered phone numbers.
- Download apps safely: Only install apps from trusted app stores and confirm the publisher’s name.
- Protect OTPs and passwords: Never share one-time passwords, PINs or bank login details with anyone.
- Avoid upfront fees: Legitimate loans don’t require large advance payments for approval.
- Read terms carefully: Check interest rates, processing fees and the full repayment schedule before signing.
- Limit app permissions: Don’t grant unnecessary access to contacts or SMS unless essential for the service.
- Use secure networks: Avoid applying for loans over public Wi‑Fi or shared devices.
- Keep records: Save screenshots, agreements and communications for future reference.
- Check credit statements: Monitor bank and credit reports to spot unauthorized loans or withdrawals early.
What to do if you become a victim
- Immediately inform your bank and block affected cards or access.
- Change passwords and revoke app permissions where possible.
- Collect evidence: screenshots, messages, app details and phone numbers used by the scammers.
- File a police report and register a complaint with the relevant cybercrime cell or consumer protection authority.
- Notify the legitimate lender if fraudsters used their name so they can flag impersonation.
Digital lending brings convenience, but staying cautious can prevent large financial and emotional losses. Simple habits—verifying a lender, protecting OTPs and keeping records—can make a big difference.