People fall prey to fraudulent loan schemes

Swindlers post multiple plans online to fleece simple-minded folks

LAHORE:

Fraudsters are using online loan schemes to rob citizens and subject them to mental torture through fraudulent loan plans advertised on social media. These scammers advertise various loan plans on traditional and sponsored pages, along with videos to attract users. They offer loans ranging from Rs1,000 to Rs100,000 without any income proof, salary slip, or bank statement requirements.

"Apply now and get instant money," they claim.

For instance, one advertised plan offered Rs10,000 for 90 days against an interest of only Rs600; Rs30,000 for 120 days against Rs2,400 interest; Rs50,000 for 150 days against Rs5,000 interest; Rs70,000 for 180 days against Rs,8000, etcetera, etcetera. These plans have different names, but most of them are fraudulent.

The fraudsters lure borrowers into applying through the given link, where they are asked to provide personal information, including identity card photos and someone's number as a guarantee. Like many other apps, the borrowers are also asked to grant access to their contact numbers.

Once a person clicks on the “grant access button”, their personal data is accessed by the fraudsters.

Usually, a collection notice is issued by an online payment service app, approving the loan for a much lesser amount than applied for. The real fraud begins after a week of issuing the notice, when the borrower starts receiving calls asking them to pay Rs7,000 immediately against a loan of Rs5,000.

When the debtor replies that they were told to return the loan amount within 90 days and that the interest was only six percent, the caller says that the debtor did not read the terms and conditions carefully, and therefore, they have to pay the amount demanded with interest. The borrower is then threatened with legal consequences, and sometimes indecent photos are used to blackmail them.

Amjad Saleem, a victim, said that he had sought a loan of Rs30,000, but he got only Rs5,000. After a few days, they started blackmailing him. His wife, mother, cousins and colleagues started getting calls.

Published in The Express Tribune, April 26th, 2023.

 

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