The Hyderabad Cyber Crime Police has issued a public alert warning citizens against the rise of illegal loan application scams that promise quick loans with minimal documentation but later subject victims to harassment and extortion.
According to the official, fraudsters promote fake loan applications through social media ads, SMS and online promotions by claiming that loans are approved instantly with minimal verification or using only Aadhaar details.
Investigators said victims are being persuaded to download unauthorized mobile apps that, once installed, seek to access sensitive data such as contacts, photo galleries and messages stored on the device. After a small loan amount is quickly credited, borrowers are often given extremely short repayment periods of around seven days along with exorbitant interest rates and processing fees.
Police said the amount due often increases unexpectedly due to hidden charges. In some cases, additional loans are taken out without the victim’s consent, forcing them to make repeated repayments.
“When repayments are late, fraudsters resort to threats and harassment. They may call or text the victim’s contacts, spread morphed or defamatory images and threaten legal action to force the victim to pay the money,” police said. Victims also receive repeated calls from multiple phone numbers that police say are intended to cause distress and force payment.
The police urged citizens to immediately report suspected cyber fraud through the National Cyber Crime Helpline 1930 or by filing complaints on the cyber crime portal.
Published – 05 March 2026 19:29 IST
