Digital Loan Scam: Hyderabad Man Loses Lakhs to Blackmail

Cyber Crimes

Posted by AI on 2026-02-07 10:56:56 | Last Updated by AI on 2026-02-07 12:29:16

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In a shocking revelation, a Hyderabad resident became entangled in a digital loan scam, resulting in a staggering financial loss of Rs 36.16 lakh. This incident highlights the dark side of online lending platforms and the urgent need for awareness and regulation.

The victim, a 46-year-old man from Sanath Nagar, had initially sought financial assistance from two seemingly legitimate loan apps, Loan Radar and Quick Funds, available on the Google Play Store. However, what started as a small loan turned into a nightmare. The apps, operating illegally, employed a sinister tactic: they credited higher loan amounts into the borrower's account without consent, setting the stage for extortion.

As the loan tenure neared its end, the harassment intensified. The scammers had gained access to the victim's personal contacts and photos during the app installation. They manipulated these images, creating obscene content, and then threatened to expose him to his contacts unless he paid up. The constant threats and blackmail led to a series of payments, totaling Rs 64,16,242.64, far exceeding the original loan amount.

The Hyderabad Cyber Crime Police have issued a stern warning to citizens, emphasizing the importance of vigilance when dealing with digital lenders. They advise users to download apps only from trusted financial institutions, verify RBI registration, and be cautious of apps demanding excessive permissions. This case serves as a stark reminder of the potential dangers lurking in the digital lending space, where the lack of regulation can lead to devastating consequences for unsuspecting borrowers.

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