No clues on loan app scam suspects in 37% of cases

Bengaluru: Since 2020, in 37% of the cases of harassment by loan app agents, suspects remained unidentified by investigators, underscoring the fact that with the ever-growing threat of dubious online loan providers, tracking perpetrators remains a challenge.

Fifty-two pages of case briefs between 2020 and 2023, accessed and analysed exclusively by DH, revealed that in 1,011 cases, investigators had submitted to courts that in 372 cases (36.79%), suspects were unidentified. Another 84 cases (8.30%) were "undetected", the data showed.

The data showed 422 cases (41.74%) in the same period remained under investigation, while 19 (1.87%) were pending trial. The most cases in the four years were reported in 2022 (586), of which suspects weren't identified in 322 (54.94%).

Cases dip

From 586 cases in 2022 to 353 in 2023, the cases saw a massive decrease. In 2020 and 2021, three and 69 cases of loan app harassment were registered, respectively. Investigators attributed the sudden drop in cases to the busting of Chinese loan app rackets in some parts of the country in early 2023 and increased awareness among people, while some "still fell prey".

Instant loan apps provide instant eligibility with minimum documentation. These apps are floated on social media platforms where unsuspecting users download them in case of need.

Once the app is downloaded, the user grants it certain permissions for contacts, gallery, phonebook etc, allowing the app operator access to their data. Despite repaying the loans, the loan app agents, now having access to the victims' photographs and other details begin blackmailing, mainly by using their morphed explicit photographs.

DH has reported cases in the past where the sum was credited to victims' accounts despite them not raising any request and only opening the app and then being blackmailed with photoshopped photographs. In the past, some victims have also died by suicide unable to bear the harassment.

Foreign servers, international perps

Investigators probing the loan app cases are plagued by several challenges. Some of them include apps being hosted on foreign servers and international crime syndicates.

"They are hosted on servers abroad so it is difficult to trace the owner," a senior cybercrime investigator told DH. "They may be based anywhere in the world. They use hired bank accounts as mules and the holders won't have a clue. Sometimes, calls originate from call centres outside the country and operating in other states is a big challenge."

The investigator said that previously, Chinese loan apps were rampant, but their presence has decreased. "Some [suspects] are within the country, while some are in Dubai (Indians only) and some in China. In many cases, the loan apps removed by AppStore and PlayStore pop up repackaged with a fresh look," the officer said.

"There is a lack of due diligence by any platform over such advertisements, including PlayStore, allowing uploading such apps without proper verification," he added.

Delayed response from banks is also a challenge. The data revealed that between 2022 and 2023, the police were awaiting bank responses in 37 cases. Bengaluru police commissioner B Dayananda had earlier told DH that regular monthly meetings are held with banks' nodal officers. 

Another senior officer said: "The perpetrators exploit the gaps in regulations and jurisdictional challenges. They are known to operate across the borders, which helps them avoid detection. They are also known to swiftly adapt to changing circumstances: swapping sim cards, erasing digital footprint and using the internet to expand their target market and reach victims globally."

"A collaborative approach is needed between law agencies around the globe to bring the perpetrators to the book," he added.