After banning Chinese apps suspected of stealing data for content analysis of its users, the government faces a new threat—mobile-based instant loan applications of suspected foreign origin that have been defrauding Indian users.
More than 400 ''online loan apps'' are under the scanner after the Telangana police recently busted a scam of Rs 21 crore involving ''online loan apps'' and arrested some persons, including three Chinese nationals. Investigators suspect that the scam isn't just a local crime involving some foreigners but a larger international ring involving foreign companies with Chinese nationals at their helm.
Central agencies have swung into action to uncover the role of the foreign companies and foreigners involved. The spread of the scams is from Hyderabad, Gurugram, Pune, Bangalore and Chennai—where sleuths are examining the modus operandi of these foreign companies and are investigating the links between them.
After downloading a loan app and applying for credit, the phone numbers of the customers and their family members are shared by the app company with tele-callers and agents of 25-30 similar apps. The tele-callers follow instructions from their heads in Jakarta in Indonesia but the operation of these apps is run by Chinese nationals, according to investigators. They said tele-callers called female contacts of the victim and threatened them to pay on their behalf.
''The data of the victim including his contact list was being breached by these apps,'' said an official.
According to investigators, high-interest rates of between 35 to 50 per cent were being charged from the victims. Those who defaulted were then sent standard Whatsapp text messages saying that an FIR was registered in New Delhi, along with fake case numbers.
Since December 21, the Telangana police has raided several offices in Gurugram and Hyderabad after it received inputs of fraudulent activities of mobile-based instant loan apps which can be downloaded from the Google Play store.
Besides Chinese nationals, a few Indians have also been arrested in the case. According to investigators, these loan applications and call centres were run on behalf of Liufang technologies private ltd, Hotful technologies Pvt Ltd, Pinprint technologies Pvt ltd and Nbloom technologies Pvt Ltd with registered offices in Bengaluru.
Similarly, two other firms were involved in disbursing instant loans through mobile applications. According to officials, these companies were involved in unauthorised online lending business and floated mobile apps such as Krazy Bean, Krazy Rupees, Cashplus, Rupee Pro, Gold Bowl, Rupee Day, Cash Goo, Cash Star, Real Rupee, First Cash, Money Now, Pocket Rupee, Happy Cash, Loan Card, Repay One, Monkey Box, Past Credit app and Cool Cash.
A Chinese national, Zhe Wei alias "Lambo", was apprehended at New Delhi airport last week when he was trying to leave India. Wei has been identified as the overall head of operations of loan apps run by these companies. The operational contact person, Qiu Yuan Yuan, is also a Chinese national. Two other persons hailing from Indonesia, Sisso Angelena and Jennifer, are believed to be associated with these companies. Another Chinese national, Liang Tian Tian and her husband Parshuram Lahu Takve, who is an Indian, had also been arrested. More than 50 cases and 29 arrests have been made in connection with the ongoing probe so far.