Rs 200 crore, 5 lakh customers: Massive loan app fraud busted, engineer arrested
A software engineer from Bhopal has been arrested for allegedly developing a mobile loan application that police claim was used to dupe nearly five lakh
A software engineer from Bhopal has been arrested for allegedly developing a mobile loan application that police claim was used to dupe nearly five lakh people across India of around Rs 200 crore through an instant loan scam. The accused, identified as Kamil Siddiqui and a resident of Bhopal, was arrested by the Nagpur Police Cyber Cell following an investigation into complaints of financial fraud linked to the 'Mast Money' mobile application.
Read Full Story According to the preliminary investigation, Siddiqui allegedly developed the app, which was on social media by promising instant online loans of up to Rs 15,000. Enticed by the, thousands of users downloaded the application and applied for loans. Police said that once the app was installed, the accused and his associates allegedly gained access to users' mobile phone data and took control of the loan process.
Customers were then allegedly coerced into repaying amounts far exceeding the original loan. Officials said that the borrowers who took loans of Rs 15,000 were allegedly forced to pay between Rs 25,000 and Rs 50,000, including exorbitant interest. Those who failed to make payments were allegedly threatened with the public release of their personal information and contact lists on social media and other platforms. The investigation began after two residents of Nagpur lodged complaints with the Cyber Police.
Acting on technical evidence gathered during the probe, the police tracked down and arrested the accused from Bhopal. Police are now investigating the wider network behind the alleged fraud, including the involvement of other members of the syndicate and the money trail linked to the estimated Rs 200 crore scam. Ends
The BriefWire