Loan App Fraud in Kerala: Scammers Loot ₹70 Crore in 3 Years, Housewives Among Top Targets

Loan app scams in Kerala have defrauded victims of ₹70 crore in three years, with housewives among the most affected. Police warn against illegal apps using threats, blackmail, and high interest rates.

Thiruvananthapuram: Police believe that the intense pressure from loan apps was a major reason behind the death of Nithin Raj, a student at Ancharakandy Dental College. According to the police, these loan apps are becoming a huge social threat. A shocking police report has revealed that loan app gangs have looted a staggering ₹70 crore from Kerala in the last three years. 

The data also shows that one in every five victims is a housewife, and most people who complain don't follow through with a legal case. Out of all the people who sought help from the Kerala Police's cyber wing after getting trapped by various loan apps, only 20% were willing to file a formal case. 

Loan App Fraud in Kerala

Across the state, Malappuram district has the highest number of complaints related to these loan apps. The report also says that most of the money transactions are traced back to Bihar and Rajasthan. What makes these loan apps so attractive is that they provide quick cash to people in urgent need. However, the sky-high interest rates, blackmail, and threats that follow if a payment is missed are ruining many lives. Despite action being taken against hundreds of such apps, these scams continue to operate even today. 

ADGP S. Sreejith, who is in charge of Cyber Operations, warned people to be fully aware of the traps set by online apps. He advised everyone to take loans only through proper government-approved channels and to "have the courage to say no to these offers." "These people are ready with easy money, but they demand 10 to 15 times the amount back," Sreejith explained. 

"If you don't pay up, they resort to activities that will completely ruin your reputation." He pointed out that many of these apps use APK files, breaking all the rules. "These loan apps are basically using our privacy and honour as collateral. Every person must make a firm decision to take loans only from RBI-approved banks," Sreejith urged.