• Initial Contact and Loan Offer: Victims are approached via SMS, social media ads, or messaging platforms with tempting offers for instant personal loans requiring minimal documentation.
• App Download and Permission Access: Users are asked to download a loan app that requests extensive permissions, including access to contacts, photos, SMS, call logs, and device storage.
• Submission of Personal Information: Borrowers are required to upload sensitive documents such as Aadhaar card, PAN card, and sometimes a selfie for identity verification.
• Collection of Personal References: The app mandates the submission of contact details of multiple personal references (often 5–10), giving fraudsters further access to the borrower’s social circle.
• Loan Disbursal with Hidden Deductions: A small loan amount is disbursed, often after deducting high processing or service fees. The actual received amount is significantly lower than promised.
• Unrealistic Repayment Terms: Repayment periods are extremely short (e.g., 7–14 days) with exorbitant interest rates and hidden penalties for delays.
• Harassment and Intimidation upon Default: In case of delay or default, borrowers face relentless harassment through:
• Threatening calls and messages
• Defamatory messages sent to contacts
• Circulation of morphed images and fake legal notices
• Psychological Abuse and Extreme Consequences: The continuous pressure and public shaming lead to emotional distress, and in extreme cases, victims have reported mental breakdowns or suicides.