Pramesh Jain

A major online financial fraud theft of personal data of applicants by a few micro finance companies said to be front-end firms of investors in some neighbouring countries has been busted in Karnataka, by CID cyber crime police said on Thursday.

Acting on complaints from some victims, including a woman who took loan using Paisa Loan app, the Criminal Investigation Department raided four companies, arrested the chief finance officer and human resource manager of one of them and seized laptops, mobile handsets and documents.

The cyber crime Sleuths of CID busted online loan app racket and raided several firms offering instant loan to mobile users and collecting exhorbitant interest rates.

The CID officials suspects that many such firms operating are being linked to people from neighbouring countries.

The racket came to light on Monday following a complainant filed by a woman stating that she had availed loan from one of the app and later harassed despite repaying the loan amount.

She came to know of a micro finance mobile
applications lending small amount of loans,and installed an app called “Paisa Loan”from play store.She availed loan from the said app and then repaid it on time.

Later she availed loans from several other apps. But from November’2020,even though she re-paid the loan the agents of the said apps started harassing her to pay extra interest amount, abusing her and her family members in filthy and obscene language,hacked her mobile data, created whatsapp group of the her contact list and started circulating defaming contents along
with her photographs,and also inducing her to avail loans from other apps and to repay the amount .

A similar complaint was also filed by another complainant on tuesday and both the cases are under investigation.

Based on the said complaints,raid was conducted by Cyber Crime Division,CID on four companies simultaneously in Bangalore team  Led by,CID SP,Dr Rohini Katoch Sepat,under the supervision of CID SP,Sharath Kumar, DYSPs,as,Kasim,Geetha Kulkarni,Nagaraj,and staff,on the following companies including Mad
Elephant Technologies Pvt Ltd,Borayanxy Technologies Pvt Ltd,Profitise Technologies Pvt Ltd.and Wizppro Solution Pvt Ltd were raided.

The equipment used to commit the offence including Laptops,Mobile Handsets and
documents were seized and as of now CFO and HR Manager of a company have been detained.

During the investigation,it was revealed that each companies possess several microloan apps of their own.On installation of such apps,users are
prompted with some basic questions when installing the app,that is,PAN Number,Aadhar Number,Bank account number,two individual reference mobile numbers etc.

Once this information is fed into the application, the app was installed into her phone.During the installation of the application,all kinds
of permissions (contacts,SMSs,call logs,camera, storage etc.,)is sought from the customer, a senior Police officer said.

Out of the loan approved by the app,(generally between Rs.3,000 to Rs.9,000),approximately 60-65 percent of the loan amount is disbursed to the customer’s account,after deducting interest, processing fee,tax.

If loan amount was Rs 3000 is approved,the user may get around Rs1800 to his account,after deducting all the charges.

A detailed investigation by the team has revealed that the Customers is charged interest rate of 36 per cent per annum on the loan amount.The loan repayment period is generally 7 days to 15 days and within the given period,the customer has to repay complete approved loan amount.

The customer receives alert SMS message or call from recovery team of the app,a day or two prior to due date.

The accused would not only harass and threaten the customers but also hack their mobile phone data (within a day or two after deadline),specially contacts and pictures of the customer.

Using these data,a whatsapp group consisting the contacts of customer is created and messages against the customer is circulated in the group with the photograph of the customer, with all kinds of abuse,sexual overtones,using customer’s photographs in the app with a tag of “CHOR”,“FRAUD”, “420”,“DEFAULTER”.

There are instances (in our own case)where a voice message is sent threatening physical and sexual assault on the female victims by the company recovery agents.This harassment will continue till the loan is repaid.

The second part of the problem is that,the customer is induced by these recovery agents to repay the loan by taking other loan thorough a different mobile application,which she has to install in her mobile phone.

As such the complainant is caught up in the loop of taking and repaying the loansthe officials said.

Preliminary investigation found that the owners of these apps are some front-end companies,for citizens of neighbouring countries are the
investors/directors and CEOs for every such company.

On identifying the agreements delivered to the complainant,it is observed that some NBFCs (Non Banking Financial Companies)are having agreement with these companies for disbursing loans.

Further investigation and raids on
these companies has revealed that,every company has at least 10 to 15 such applications developed and monitored, by them.

These applications are directly
installed,accessed,used and monitored from cloud systems based in neighbouring countries.

All the data is also hacked from this country and used against the victims.Above said companies have also used fake sim cards to call the customers.

Citizens are requested not to share the data over any kind of applications which may go against them,as a neighbouring country is using such data against the victims after hacking their mobile phones.

Meanwhile,The Reserve Bank of India has cautioned against loans being offered by unauthorised digital platforms, mobile applications promising a quick and hassle-free process. The note of caution comes amid a major instant loan app scam being surfaced in the country with its multi-city network.

There have been reports about individuals/small businesses falling prey to the growing number of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in a quick and hassle-free manner.

These reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers,” the RBI said in its notice.

“Members of the public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps,” it said.

Urging people to never share copies of KYC documents with unidentified persons, unverified/unauthorised Apps, RBI said such fraudulent activities can be reported to law enforcement agencies or RBI’s Sachet portal (https://sachet.rbi.org.in).

“Reserve Bank has also mandated that digital lending platforms which are used on behalf of banks and NBFCs should disclose the name of the Bank(s) or NBFC(s) upfront to the customers,” the notice said.

Any victims of micro loan apps may contact Cyber Crime Division, CID said in a press release.

Mudigere MLA M P Kumaraswamy has written to Home Minister Basavaraj Bommai, alleging that the police forced him to pay a fine, though he was wearing a mask.

BENGALURU: Mudigere MLA MP Kumaraswamy has written to Home Minister Basavaraj Bommai, alleging that the police forced him to pay a fine, though he was wearing a mask. In a letter to the minister, Kumaraswamy said that around 12.30 pm on Thursday, he was on his way to the Legislators’ Home in a rented car and was stuck in traffic in front of Seshadripuram Police Station, a policeman came near the car, and forced the driver to roll down the tinted window and asked him to pay the fine of Rs 250 even though he was wearing a face mask.I always use a mask since I suffered from Covid-19. But the police started arguing that we were not wearing the masks properly. I was really frustrated with the behavior of the police who were misusing their power. Since I am a responsible person, I did not argue with them and paid the fine. I wanted to bring the incident to the notice of home minister.”A police officer from the Seshadripuram police station said he learned of the incident, but a senior officer has to look into the matter to take action against the personnel who fined the legislator.

A total of 14 flights from these two regions landed during the day, said the official of the Brihanmumbai Municipal Corporation (BMC)

MUMBAI: As many as 1,206 passengers landed at the Mumbai international airport from Europe and the Middle-East on Thursday and 788 of them were quarantined in the city, a civic official said.

A total of 14 flights from these two regions landed during the day, said the official of the Brihanmumbai Municipal Corporation (BMC).

Flights from the UK have already been suspended after a new variant of coronavirus was detected in that country.

Of 1,206 passengers, 788 were kept under institutional quarantine in Mumbai while the rest were sent to other states, the official said.

As many as 32 passengers were exempted from the mandatory institutional quarantine.

It could not be ascertained if any passenger had symptoms of COVID-19.

On receiving directives from the Central and state governments earlier this week, the BMC announced mandatory institutional quarantine for passengers arriving from the European countries and Middle East from Wednesday.

The Pune district administration has received a list of 504 passengers who returned from the UK in the last 28 days, an official said.

After a new variant of coronavirus was detected in the UK, the Union government had asked for tracing of passengers who arrived in India from the UK between November 25 and December 23.

“We have received a communication from the state government to trace the passengers who arrived in the district from the UK between November 25 and December 23.

“We have received a list of 504 passengers who will be traced and their RT-PCR test will be conducted,” said an official from the district health department.

The samples of those found positive for infection will be sent to the National Institute of Virology (NIV) for genome sequencing to check if the virus is the same as the new strain, as per the Maharashtra government’s guidelines.

For those who have already tested positive after returning from the UK, their swab samples will be taken again and sent to the NIV for genome sequencing.

The local administration in Maharashtra’s Thane district has drawn up a list of 349 people who have travelled from the European country in the last one month, an official said on Thursday.

The administration is in the process of identifying and tracing people who have travelled from the UK since November 25, the official said.

Of the 349 travellers, 55 have come to Kalyan taluka from the UK and the process is underway to track them down, said Madhuri Phophle, PRO of the Kalyan Dombivli Municipal Corporation.

The civic commissioner has also appealed to citizens to intimate the civic corporation about such travellers, the official said.

According to sources from the Thane Municipal corporation, the civic body has received a list of 134 persons, of which 72 have been traced.

Meanwhile, the Navi Mumbai Municipal Corporation has received a list of travellers and around 50 to 60 may be from Navi Mumbai, an official said.

The new strain of coronavirus found in Britain is reported to be spreading rapidly and is said to be highly infectious.

Singh said he himself is a farmers’ son and assured that the Modi government “will never do anything which is not in the interest of the farmers”.

NEW DELHI: Appealing to protesting farmers to come forward for discussions on farm laws, senior BJP leader and Union Minister Rajnath Singh on Friday said the government will amend the legislations if they are not found beneficial.

Describing the protesting farmers as his own people, Singh said, “Those who are sitting on dharna are farmers and are born to farmers’ families.We have lot of respect for them.”

Addressing a rally at Dwarka in the national capital, Singh said he himself is a farmers’ son and assured that the Modi government “will never do anything which is not in the interest of the farmers”.

Requesting the farmers to try the new Agri laws as an experiment, the former BJP president said if these are not found beneficial, the government would bring all necessary amendments.

“Let farm laws be implemented for an year or two. Let’s try this as an experiment, and if found not beneficial for farmers, the government will be ready for all possible amendments,” Singh said.

Underlining that all problems can be resolved through dialogue, Singh said Prime Minister Narendra Modi wants talks with farmers to continue, and therefore, the government has extended an invitation to them.

Singh appealed to all protesting farmers to come forward for discussions on the farm laws.

Shah said if farmer organisations felt that any provision of the three new farm laws is against their interests, the Modi government was ready to discuss and consider the same with an open mind

NEW DELHI: No corporate can snatch away any farmer’s land as long as Narendra Modi is Prime Minister of the country, Union Home Minister Amit Shah said on Friday and asserted that the provision of MSP will continue and mandis will not be shut down.

Addressing a gathering in Kishangarh village in the national capital, Shah said if farmer organisations felt that any provision of the three new farm laws is against their interests, the Modi government was ready to discuss and consider the same with an open mind.

Shah blamed the Opposition, including Congress, for spreading lies about the minimum support price (MSP) and other provisions of the farm laws.

“The Opposition is speaking brazen lies. I again reiterate that the MSP will continue and the mandis will not be closed. Farmers’ welfare is the top-most priority of the Modi government,” Shah asserted.

The years-old demand of one and half times MSP on crops has been implemented by the Modi government during 2014-19, he said.