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

Mr. Alok Sharma, a resident of a metropolitan city, recently found himself in a distressing situation. Earlier this year, he saw an advertisement for a quick loan and applied for ₹5,000 through an app called “SwiftLoan Finance.” The terms seemed reasonable: he received a disbursal of ₹4,300 with an agreement to repay ₹5,000 within a month. However, the situation quickly turned sour.

A few days before the repayment due date, Mr. Sharma checked the app and was shocked to see that the amount due had inexplicably jumped to ₹6,500. His attempts to contact the company were futile, as all the provided contact numbers were invalid. On the repayment day, he began receiving anonymous calls that were disconnected abruptly. After the due date passed, the nature of the calls escalated to severe harassment and threats. One caller threatened to morph his personal photos from his phone’s gallery and send them to all his contacts. Another threatened to visit his home and harm his parents.

Alarmed, Mr. Sharma contacted the cyber crime cell and filed a complaint. They informed him that he had fallen victim to a fraudulent app and advised him to avoid all contact. A couple of months later, the nightmare continued when he checked his CIBIL report. It showed an outstanding debt of ₹11,500 to SwiftLoan Finance, and his credit score had plummeted from a healthy 750+ to the low 600s, severely impacting his financial standing.

Advice in such cases

Falling victim to a digital lending scam can be terrifying, but it is crucial to act calmly and strategically.

• Preserve all evidence immediately. This includes screenshots of the app, transaction records, loan agreements, and any communication, especially threats.
• Cease all communication with the fraudsters. Do not respond to their calls, messages, or emails. Block their numbers.
• Never pay any additional money they demand. Paying them will only lead to further extortion.
• Immediately file a formal complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or by dialing the helpline number 1930.
• File a complaint with the Reserve Bank of India’s “Sachet” portal, which deals with grievances against financial entities.
• Inform your bank about the fraudulent nature of the transaction.
• 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

Such fraudulent activities involve multiple criminal offenses under Indian law. The primary statutes applicable are the Bharatiya Nyaya Sanhita (BNS) and the Information Technology Act, 2000.

• Cheating (Section 318, BNS): The act of dishonestly inducing you to take a loan under false pretenses and then altering the terms constitutes cheating.
• Extortion (Section 326, BNS): Threatening to publish morphed photos or harm your family to compel you to pay money is a clear case of extortion.
• Criminal Intimidation (Section 351, BNS): The threats made over the phone to cause harm to your reputation or person fall under criminal intimidation.
• Information Technology Act, 2000: Several sections apply, including Section 66C (identity theft), Section 66D (cheating by personation using a computer resource), and Section 67 (publishing or transmitting obscene material in electronic form).

If you are the complainant

As the person who has been defrauded and harassed, you are the complainant. Your role is crucial in bringing the perpetrators to justice.

• Gather and organize all digital proof. This is the foundation of your case.
• File a detailed complaint on the cybercrime portal, providing a clear timeline of events and attaching all evidence.
• Once an FIR (First Information Report) is registered, obtain a copy. This document is essential for all further actions.
• Use the FIR to formally dispute the negative entry on your credit report with CIBIL, Experian, or other credit bureaus.
• Inform your friends and family about the situation proactively, warning them that they might receive malicious messages or images from unknown numbers, and they should ignore them.
• 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 targeted harassment can take a severe mental toll. Your priority should be your safety and peace of mind.

• Do not engage with the harassers. Any response, whether angry or pleading, confirms that your number is active and you are affected by their threats.
• Block all unknown numbers from which you receive threats.
• Strengthen the privacy settings on your social media accounts to prevent them from gathering more personal information.
• Document every instance of harassment, including the date, time, number, and the nature of the threat. This is vital evidence for the police.
• 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

Navigating the police system can be challenging. Typically, after you file a complaint on the national portal, it is forwarded to your local police station’s cyber cell or designated officer. Due to the high volume of such cases and the difficulty in tracing culprits who use fake identities and operate across state lines, the initial response may seem slow. The police will summon you to give a formal statement and submit all the evidence you have collected. It is important to be persistent and follow up regularly on the status of your complaint. Having a lawyer represent you can often lead to a more prompt and serious response from the authorities.

FAQs people normally have

Should I pay the money to stop the harassment and protect my photos?

Absolutely not. Paying the fraudsters will not solve the problem. It signals to them that you are vulnerable, and they will likely increase their demands. There is no guarantee they will delete your data; in fact, they will see you as a source of more money.

Can these apps really access my contacts and gallery?

Yes. When you install these unverified apps, they request extensive permissions to access your contacts, photo gallery, messages, and location. By granting these permissions, you unknowingly give them full access to your personal data, which they then use for extortion.

Can my CIBIL score be fixed?

Yes. Once you have a copy of the FIR, you can file a dispute with the credit bureau. You will need to submit the FIR and a detailed explanation of the fraud. The bureau will investigate the matter, and upon verification, the fraudulent entry will be removed from your credit history, and your score will be rectified.

What evidence is required?

Strong evidence is the backbone of a successful complaint. You must collect and preserve:

• Screenshots of the app’s pages showing the loan details, repayment amounts, and any contact information.
• Your bank account statement showing the initial credit of the loan amount.
• All communications from the fraudsters: SMS, WhatsApp messages, and call logs. If possible and legal in your jurisdiction, record the threatening phone calls.
• The URL or advertisement that led you to download the app.
• A copy of your credit report showing the negative impact.

How long will the investigation take?

Cybercrime investigations, especially those involving financial fraud, are complex and time-consuming. Tracing the digital trail of criminals who operate using anonymous servers and multiple bank accounts can take several months, sometimes even more than a year. However, the primary goal for the victim is to get an FIR registered promptly. The FIR is the legal tool that allows you to start the process of clearing your name, stopping the harassment, and correcting your credit score, even while the police investigation to catch the criminals is ongoing.

Advocate Sudhir Rao, Supreme Court of India