The New Loan App Frauds You Need to Know Right Now, Even China Is Involved!

What are these loan apps?

Recently there was a boom of these money lending apps giving people loans

by just one click without any much documentation work. You had to just

register for any of these apps and you would have an instant loan

approval within minutes. People were fascinated with these kinds of

applications and started to use them and the worse part is they even recommend them to their friends, especially during this pandemic. When many small businesses

suffered major losses these apps made immense profits.

person giving loan to another person
Money loan scams

The Mastermind behind these Apps?

According to reports, the accused "Zhu Wei" (27) was arrested by the

Hyderabad police at the Delhi airport. He was the head of operations for

Aglow Technologies Pvt. Ltd., Liufang Technologies Pvt. Ltd., Nabloom Technologies

Pvt. Ltd., and Pinpoint Technologies Pvt. Ltd., and all the instant loan app companies.

There are over 72 such apps which are lending money online without

proper approval from RBI (Reserve Bank of India) and mandatory tie-ups

with banks and registered NBFCs. Earlier, three people including a Chinese woman

were also arrested in Telangana.

Zhu Wei

The BloodBath:

This fraud recently came into light after five of their users or borrowers

committed suicide, unable to bear the harassment by these apps recovery agents.

Rs.21,000 crore transaction scam:

At the initial phase of investigation it is revealed that nearly 1.4 crore

transactions worth Rs.21,000 crores have taken place so far. Major volumes of

transactions have been done by payment gateways and bank accounts of

these apps, even a large number of international transactions had been

done through "Bitcoins".

Loan credidted

Walking into their trap:

This scam amount is quadrupled by a master plan forged by these companies or apps. When a customer downloads this app, He/She will be asked to allow some permissions that gives them access to the customers contacts and Emails. After the customer avails loan, these companies telecallers call customers family and friends and lure them inorder to take loan saying your credentials have been verified and you are eligible to take a loan. And the worse part is, they continuously send spam messages to your relatives and friends about your loan details, if you fail to repay the loan on time.

Getting control over our personal data

Even the educated are acting dumb!

Many customers, majority of who were educated youth and IT professionals

fell for this trick and borrowed as much as Rs.50,000. The interest rate being

35% (significantly higher than any RBI approved institution) and a hefty

penalty of Rs.3000 per day, if the repayment is delayed. This made customers borrow more amount again to repay their previous loan. Initially, it was like a relief to many of them as instant money was eagerly required for people who lost their jobs and had other commitments to fulfill. But later it turned into a scary nightmare.

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