The Delhi Police has busted an extortion racket that was being run via instant loan applications. The police unearthed the involvement of a Chinese national in the extortion racket.
Two persons, including one Chinese national (left), were arrested in connection with extortion and fraud done using instant loan applications. (Image: India Today)
By Arvind Ojha: Instant loans via mobile phone apps and minimum hassle- this was the trap laid down by fraudsters who sought to take advantage of people who were in dire need of money. And this is how users who just needed Rs 5,000-Rs 10,000 ended up paying lakhs of rupees as a consequence.
The Delhi Police recently busted an extortion racket that used instant loan applications to disburse loads at higher rates. And even after the loan amount was paid, they continued to extort money using morphed pictures of the users.
In the racket, the involvement of a Chinese national has also come to light. So far, 24 people have been arrested in connection with the case, including the Chinese.
MODUS OPERANDI OF RACKET
Firstly, applications offering instant loans were developed. The apps were malicious as they sought permission from users to access their personal information before he/she could use the app.
The applications were hosted on Google Play Store, websites, and in advertisements. The apps also marketed them using search engine optimization feature of Google.
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