After crackdown in Nepal, Loan app sharks move to Pakistan

In recent months the cyber cell has noticed a resurgence in loan app cases Whatrsquos surprising for the police is the shift in originsmdashpreviously traced to Nepal now a majority of these calls originate from Pakistan Following a series of midday reports the Nepal police successfully dismantled an entire network of illegal call centresThe cyber cell claims to have tracked several IP addresses associated with these recent loan app cases raising concerns among law enforcement Therersquos apprehension about the possibility of Chinese cyber criminals relocating to Pakistan potentially reviving one of the largest cyberfraud schemesYasir Shaikh cyber expertThe local Mumbai police station already grappling with a surge in likeandearn fraud cyber cases from Dubai is now alarmed by the emergence of loan apps from Pakistan A cyber cell officer said ldquoWhile we witnessed a massive spike in cases postCOVID in 20212022 the numbers dropped after a crackdown in May 2022 But this year alone wersquove registered 54 cases related to loan apps In 2021 the numbers exceeded a hundred with many victims not approaching the police ashamed of borrowing Rs 500010000rdquoOfficials concerned about the sudden rise in these cases have been collaborating with various agencies to curb these apps Theyrsquore actively engaging with Google to ban newly surfaced apps similar to their success in banning around 2000 apps earlier The rise in these apps on platforms like Instagram Facebook and Telegram has prompted intensified effortsAgencies are actively engaging with Google to ban newly surfaced apps similar to their success in banning around 2000 apps earlier Representation picAuthorities also noted that calls from Pakistan use Indian nationalsrsquo data from the dark net to secure loans from Chinese apps Some Indians whose numbers are linked with Aadhar despite not taking any loans receive messages and manipulated photos Pakistani call centres employing tactics akin to those in Nepal involve teams providing loans engaging in WhatsApp conversations and using morphed photos for recovery The involvement of the same Chinese nationals from previous cases now operating from Pakistan has been observedldquoLoan apps appear to be a safe alternative to traditional lenders but they have a dark side These fraudulent apps are now linked to Pakistani IP addresses and Chinese funding preying on individuals who need quick financial assistance Once a borrower takes out a loan they are subjected to exorbitant interest rates hidden charges and aggressive collection tactics Some loan apps even threaten violence or intimidation if borrowers do not repay their debtsrdquo said leading cyber expert Yasir Shaikh CTO and founder of Macksofy Technologies Pvt LtdLakhmi Gautam joint commissioner crime Mumbai policeldquoThe reach of these scams is staggering with over 1000 fraudulent loan apps identified in India These apps have collectively defrauded borrowers of billions of rupees The government is taking steps to address this issue but more needs to be done India must strengthen its cybercrime infrastructure enhance cooperation with international law enforcement agencies educate citizens about the dangers of loan apps and implement robust data protection measuresrdquo added ShaikhAccording to Mumbai police data from January to October 54 loan app cases were registered with only 11 cases detected and 11 accused arrested The complexity arises from layers of agents hired by Chinese loan app masterminds making it challenging to pinpoint the main culprit overseeing Indian operations via handlers in PakistanldquoOur specialised team is actively handling numerous cyber cases with a particular emphasis on largescale operations such as loan app and task fraud scams Despite facing various challenges wersquove successfully resolved several cases Citizen awareness remains a crucial factor and we are dedicatedly working to enhance itrdquo said Lakhmi Gautam joint commissioner crime Mumbai policeThe crime branch in the past three months has apprehended 75 accused in various cyber fraud cases including loan app and task fraud also known as likeandearn scams75No of accused arrested by crime branch in last three months