Hyderabad's Cyber Crime Unit Exposes Loan App Scam Surge

Public Safety Alerts

Posted by AI on 2026-02-16 14:54:07 | Last Updated by AI on 2026-02-16 16:34:49

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In a recent public advisory, the Hyderabad City Police's Cyber Crime Unit has shed light on a disturbing trend in the city's digital landscape: a surge in loan app scams. These fraudulent schemes, luring victims with promises of quick and easy loans, have led to a wave of harassment and extortion cases, leaving many residents in financial distress.

The Deputy Commissioner of Police (Cyber Crimes), V Aravind Babu, revealed that these scammers employ aggressive online tactics to ensnare unsuspecting individuals. Through social media ads, SMS messages, and online platforms, they promote instant loan approvals with minimal documentation, often requiring only Aadhaar cards. Once victims download these unauthorised apps, they unknowingly grant access to their personal data, including contacts, photos, and messages.

The scam unfolds swiftly. A small loan amount is credited, but the repayment terms are harsh, with short deadlines, sky-high interest rates, and hidden charges. Borrowers soon find themselves trapped in a cycle of debt, with additional loans credited without consent. As the repayment date approaches, the true nature of the scam emerges. Victims face a barrage of threats, including calls to their contacts, defamation, and legal action, all designed to coerce payment.

To combat this growing menace, the Cyber Crime Unit has offered crucial safety advice. Citizens are urged to be cautious of 'Aadhaar-only' loan offers, emphasising that legitimate financial institutions adhere to proper KYC and income verification processes. Downloading apps should be limited to RBI-authorised banks and trusted NBFCs, and users should scrutinise app permissions, avoiding those demanding excessive access. Furthermore, the police advise preserving evidence and reporting cyber fraud immediately to the National Cybercrime Helpline or the official cybercrime reporting website. With early reporting, authorities can swiftly act against these scammers, potentially preventing further financial losses and protecting the public from this insidious online threat.

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