How big is the loan app scam?

Apart from the money, factors like the number of bank accounts, loan apps, and people involved lent to the sheer size of this scam. The number of borrowers ran into thousands. The magnitude is enormous. The amount of money involved will definitely increase.

Are there more Chinese, and other kingpins?

We found passports of individuals who are not in India. We know about an individual operating from Jakarta. The number will rise.

Tell us about the money trail you have established

We are investigating money laundering. It is apparent the loan apps did not follow procedures. We discovered that a Chinese national we arrested was involved in an investment apps scam. We found the money trail for Burse App, an investment loan app.

Do you think the canvas of scam is across India?

We raided six call centres—two each in Gurgaon, Hyderabad and Bangalore. We are in touch with payment gateways to unearth this money trail. Most bank accounts were in the Delhi-NCR region.

What is the modus operandi?

Towards the beginning of 2020, these apps started mushrooming. Their businesses picked up during the pandemic. Although they were in India and employed Indian directors, their databases like login IDs, passwords and operations were in the hands of foreign nationals. Hassles began when borrowers failed to pay back. Following non-payments, harassment increased. Telecallers resorted to name shaming.

Is public naming and shaming driving suicides in the loan app scam?

Public shaming, especially among family and friends, coupled with financial distress, are major reasons behind the suicides. When borrowers download these apps, they provide access to their contact lists. Recovery agents search for contact numbers of relatives like mother, uncle, or brother to target and humiliate.

Are Indian apps involved?

Right now, the complaints are for Chinese apps. Indian apps might be involved, we are still investigating. However, funds may be too small. It is too early to comment.

jyotika@outlookindia.com