Loan Fraud: In the digital age, obtaining loans has become easier than ever, but at the same time, cases of online fraud are also increasing rapidly. Cybercriminals use fake apps, websites, or calls to deceive people, obtain their bank account information, and then make off with the money. Many people trust loan offers without proper investigation, becoming victims of fraud. Therefore, it is important to verify the authenticity of any financial institution or app and only take loans from RBI-registered NBFCs or banks.

How Fake Loan Apps Commit Fraud

Fraudsters first send attractive loan offers to people through social media, messages, or calls. Then, they ask them to register on a fake app or website. After obtaining the requested information, such as Aadhaar, PAN, bank details, or OTP, the fraudsters gain complete bank access to the victim. In some cases, these apps gain access to the phone’s gallery and contacts and later resort to blackmail.

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Seek loans only from RBI-registered institutions

If you’re considering a loan offer, first check whether the bank or company in question is approved by the Reserve Bank of India (RBI). A list of all registered NBFCs and banks is available on the RBI website. Do not trust offers received through calls, emails, or links. Always seek information from the official website or customer care number.

Beware of those who demand payment before the loan is approved

Many fraudulent agents or apps demand payment in the name of a “processing charge” or “security fee” before the loan is approved. Remember, no legitimate bank or financial institution charges any fees before loan approval. If someone is demanding payment up front, it’s a sign of fraud.

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Keep your personal information safe

Fraudsters often ask for sensitive information such as Aadhaar, PAN number, bank details, or OTP. Using this data, they can initiate fraudulent loans or transactions in your name. Therefore, do not share your information with any unknown person or app, and use two-factor authentication for every transaction.

What to do if you are a fraudster

If you suspect a loan call or app, immediately file a complaint at https://cybercrime.gov.in/.

Also, inform the nearest police station. The sooner you report, the faster action will be taken.