Cyberabad Police Register 661 Cases Against Illegal Loan Apps Since 2022
Cyberabad Police in Hyderabad have registered 661 criminal cases against illegal instant loan applications and harassment by recovery agents since 2022. The crackdown, which compiled data up to June of this year, targets unauthorized digital lending platforms that exploit citizens in need of quick money and subject them to severe harassment.
According to data compiled by the Cyberabad cybercrime department, the police have arrested 24 individuals, filed 18 chargesheets, and disposed of 478 cases so far. An additional 165 cases remain under active investigation, while 45 accused persons operating outside Telangana have been traced.
The data reveals that the highest number of cases was recorded in 2024 with 246 cases, though the trend has since declined, with 55 cases registered up to June of this year.
Cyberabad Cybercrime DCP T. Sai Manohar stated that the public preference for quick online loans over traditional banking channels is a major driver of these frauds. He noted that fraudsters exploit this demand by offering instant loans with minimal restrictions through unauthorized platforms that lack Reserve Bank of India (RBI) approval or licenses.
An analysis of the victims shows that men comprised the majority of those affected, with 506 male victims compared to 155 female victims. The most affected age group was individuals aged 26 to 35 years, accounting for 308 victims, followed by those aged 36 to 45 years (165 victims) and 18 to 25 years (100 victims).
In terms of occupation, private sector employees were the most targeted group with 343 victims, followed by 145 self-employed individuals and 75 students.
DCP Saketh Manohar explained that victims often compromise their privacy by granting mobile phone access permissions to these fake platforms. Once access is obtained, recovery agents resort to aggressive tactics, including repeated harassment calls, contacting friends and family, misusing personal photographs, creating morphed images, tracking locations, and issuing threats.
The harassment has led to severe emotional distress and financial loss. Since 2022, two individuals have died by suicide due to loan app harassment, with police invoking abetment to suicide charges in one of the cases.
