If you are stuck in such a situation, here is what to do.

Mr. Alok Sharma, a resident of Rampura, recently found himself in a distressing situation after interacting with a digital lending application. A few weeks ago, while searching for a quick financial solution, he came across an app named “SwiftCash Loans” on the official app store. Lured by its numerous positive reviews, he decided to install it.

He proceeded with the registration, providing his basic details and some reference contact numbers. To his surprise, the app did not request access to his phone’s contacts or gallery, which is a common practice for such applications. A major red flag was raised when the app instantly approved a loan of ₹3,500 without performing any CIBIL score check or credit history verification. Realizing the suspicious nature of the operation, Mr. Sharma immediately decided against proceeding. However, he could not find any option within the app to delete his account or withdraw his data. Frustrated, he uninstalled the application from his phone.

About a week later, his concerns materialized. He began receiving a barrage of over twenty spam calls a day and several harassing messages on WhatsApp from various unknown international numbers. He promptly blocked these numbers but remained deeply concerned about the misuse of the personal data he had submitted. This experience serves as a stark warning about the potential dangers lurking behind seemingly convenient instant loan applications.

Advice in such cases

If you find yourself in a similar predicament, it is crucial to act swiftly and strategically to protect yourself.

• Immediately cease all communication with the harassers. Do not respond to their calls, messages, or threats. Block every number they use to contact you.
• Report the application on the Google Play Store or Apple App Store, detailing your experience to warn other potential users and get the app flagged for review.
• File a formal complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or by calling the helpline number 1930. This is the official channel for reporting such offenses.
• Inform your bank about the incident and ask them to monitor your accounts for any suspicious activity.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

These predatory loan app schemes involve multiple criminal offenses under Indian law. The new Bharatiya Nyaya Sanhita (BNS), 2023, along with the Information Technology Act, 2000, provides a framework to tackle such crimes.

• Extortion (Section 324 of BNS, 2023): If the app operators threaten you to induce payment, it amounts to extortion.
• Criminal Intimidation (Section 351 of BNS, 2023): Sending threatening messages or making intimidating calls is a punishable offense.
• Identity Theft (Section 66C of the IT Act, 2000): Using your personal information like Aadhaar or PAN number without your consent constitutes identity theft.
• Cheating by Personation (Section 66D of the IT Act, 2000): If the app operators cheat by pretending to be a legitimate financial entity, this section applies.
• Data Protection Laws: The Digital Personal Data Protection Act, 2023, imposes heavy penalties on entities that misuse or fail to protect users’ personal data.

If you are the complainant

As the person whose data has been compromised and who is facing harassment, you are the complainant. Your role is crucial in initiating legal action.

• Gather and organize all evidence. This includes screenshots of the app, messages, call logs, and any transaction details.
• File a detailed complaint online at the cybercrime portal or visit your nearest cyber police station to file a First Information Report (FIR).
• Do not delete any messages or call records from the perpetrators, as they are critical pieces of evidence.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

If you are the victim

Being a victim of such a scam can be mentally and emotionally taxing. It’s important to remember that you have legal recourse.

• Your primary step is to secure yourself by blocking the harassers and filing a police complaint without delay.
• If the scammers threaten to contact your friends or family, it may be wise to preemptively inform your close contacts about the situation to prevent them from falling for any scams or being alarmed by fake news.
• Preserve all evidence meticulously. Create a separate folder on your phone or computer to store all screenshots and recordings.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

How the police behave in such cases

Cybercrime cells in India are now increasingly aware of and equipped to handle loan app scams. When you approach them, you can generally expect them to register your complaint promptly, especially through the online portal. They will guide you on the necessary evidence to submit. The investigation will involve technical analysis, such as tracing IP addresses and phone numbers used by the culprits. However, since many of these scams are operated from outside India, investigations can be complex and require coordination with international agencies. The police will take your statement and file an FIR under the relevant sections of the BNS and IT Act.

FAQs people normally have

Can they access my phone’s data if I didn’t grant permissions?
Even without direct permissions, some malicious apps can exploit vulnerabilities in your phone’s operating system or trick you into granting permissions through deceptive pop-ups. Furthermore, the data you voluntarily entered during registration is what they primarily use.

What can I do if I haven’t lost any money?
Even if there is no financial loss, data theft, harassment, and criminal intimidation are serious crimes. The law protects you from these offenses irrespective of whether money was exchanged. You must still file a complaint to prevent them from victimizing others and to hold them accountable.

Can my data be permanently deleted from their servers?
Unfortunately, once your data is on their servers, it is extremely difficult to ensure its complete deletion. This is why prevention is key. The primary goal of legal action is to stop the harassment and penalize the criminals.

What evidence is required?

To build a strong case, you must provide the police with as much evidence as possible. This includes:

• The name of the loan app and a link to its page on the app store.
• Screenshots of all threatening or harassing messages received via WhatsApp, SMS, or any other platform.
• A detailed log of the spam calls, including the phone numbers and the date/time of the calls.
• Any bank transaction details if a loan amount was credited to your account or any money was debited.
• Screenshots of the app’s interface, especially the registration and loan offer pages, if available.

How long will the investigation take?

The duration of a cybercrime investigation varies greatly. Cases involving domestic criminals may be resolved within a few months. However, since many loan app scams are orchestrated by international syndicates, tracing the perpetrators can be a long and arduous process, often taking more than a year. The timeline depends on factors like the complexity of the technical trail, the location of the servers, and the level of cooperation from foreign law enforcement agencies.

Advocate Sudhir Rao, Supreme Court of India