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

Mr. Alok Sharma, a resident of Chandanpur, found himself in urgent need of funds and applied for a loan through a digital lending app called “SwiftCash Finance.” The app quickly disbursed ₹5,000 but stipulated a repayment of ₹10,000 within just one week. When Mr. Sharma tried to repay the amount, the provided payment gateway was non-functional. The day after the due date, he began receiving threatening calls from international numbers. The operators of the app, having gained access to his phone’s contact list, sent morphed, obscene pictures of him to his friends and family, demanding more money. Under duress, Mr. Sharma ended up paying nearly ₹40,000 to the extortionists.

Feeling wronged and frustrated by the slow initial response from the authorities, Mr. Sharma, with the help of some tech-savvy acquaintances, investigated the app’s operations. They discovered a technical vulnerability. Exploiting this loophole, Mr. Sharma managed to retrieve not only his lost ₹40,000 but an additional ₹35,000, totalling ₹75,000, from the scammers’ system. While he feels justified, he is now concerned about the potential legal ramifications of his actions. This situation, where a victim takes matters into their own hands, raises complex legal questions.

Advice in such cases

• Preserve All Evidence: Keep detailed records of all communications, transactions, threats, morphed images, and contact numbers related to the initial scam. This evidence is crucial to establish that you were the primary victim.
• Stop All Engagement: Cease all communication with the scammers immediately. Do not engage with their threats or demands.
• Report the Original Crime: It is imperative to have an official complaint on record. File a formal complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) or at your nearest police station, detailing the extortion, harassment, and financial loss.
• Secure Your Digital Life: Change passwords for all your financial and social media accounts. Inform your bank about the fraudulent transactions. Warn your contacts about the situation so they are not duped by messages from the scammers.
• 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

The actions of the loan app scammers fall under several penal provisions:

• Section 325 of the Bharatiya Nyaya Sanhita, 2023 (BNS): Deals with extortion by putting a person in fear of injury or death.
• Section 318 of the BNS: Pertains to cheating and dishonestly inducing delivery of property.
• Section 341 of the BNS: Covers criminal intimidation, which includes threatening another with injury to their reputation.
• Information Technology Act, 2000: Sections like 66C (identity theft), 66D (cheating by personation using computer resource), and 67/67A (publishing or transmitting obscene material in electronic form) are applicable.

However, the victim’s act of retrieving money by exploiting a loophole could also attract legal scrutiny, potentially under:

• Sections 43 and 66 of the Information Technology Act, 2000: These sections deal with penalty and compensation for damage to computer systems and computer-related offences, including unauthorised access to a computer system or network. While the intent was recovery, the method may be deemed illegal.

If you are the complainant

If you have been victimised by such a loan app scam and are considering your next steps:

• File a Complaint Immediately: Do not delay in reporting the crime to the police or via the cybercrime portal. A documented complaint is your primary weapon.
• Gather and Organise Evidence: Compile all screenshots of messages, call logs, transaction details, and any other proof of the harassment and extortion.
• Inform Your Bank: Notify your bank about the fraudulent transactions and follow their procedure for reporting fraud.
• 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. He can guide you on drafting a strong complaint and navigating the legal process.

If you are the victim

If you find yourself in Mr. Sharma’s position, having taken money back from the scammers:

• Do Not Panic: While your situation is legally complex, your initial status as a victim of a serious crime is a significant mitigating factor.
• Document Everything: Preserve the evidence of the original crime meticulously. This context is essential to explain your subsequent actions.
• Do Not Spend the Excess Money: The money retrieved beyond your actual loss could be considered wrongfully gained. It is advisable to keep this amount separate and not use it.
• Seek Legal Counsel Urgently: This is not a situation to handle alone. Your actions, while born out of desperation, could be interpreted as a separate offence.
• 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. A lawyer can help formulate a strategy that highlights your victimhood and frames your actions as an attempt at self-preservation and recovery, rather than a malicious act.

How the police behave in such cases

The police are generally aware of the widespread nature of these digital lending scams. Their primary focus will be on your complaint against the loan app operators. They are likely to be sympathetic to your plight as the original victim. However, the law is objective. If the scammers were to somehow file a counter-complaint against you for unauthorised access and fund transfer, the police would be legally obligated to investigate that claim as well. The investigation’s complexity, often involving multiple jurisdictions and international operators, means progress can be slow, but your cooperation is key.

FAQs people normally have

What evidence is required?

To build a strong case against the loan app scammers, you will need:

• The name of the loan app and any links used to download it.
• All bank statements showing the loan disbursal and subsequent extorted payments.
• Screenshots of all threatening and abusive messages received via WhatsApp or other platforms.
• Copies of any morphed or fake pictures used for blackmail.
• Call logs and recordings of threatening phone calls, if available.

How long will the investigation take?

Investigations into cybercrimes, especially those involving perpetrators in other countries, are inherently time-consuming. It involves technical analysis, coordination between different state police forces, and sometimes international law enforcement agencies. There is no fixed timeline, and such cases can take several months to years to see significant progress. Patience and regular follow-ups with the investigating officer, preferably through your lawyer, are advisable.

Advocate Sudhir Rao, Supreme Court of India