Hyderabad: Cyberabad Police have launched an extensive crackdown on illegal digital lending platforms after registering 661 criminal cases related to fake loan applications and harassment by recovery agents since 2022. The investigation has exposed how unauthorised loan apps allegedly targeted people in urgent need of money by offering instant loans with minimal documentation before using personal data to intimidate and extort repayments.
661 Cases Since 2022
According to official data, 2024 recorded the highest number of complaints, with 246 cases registered. The number has since declined following sustained enforcement and public awareness campaigns, with 55 cases reported till June 2026.
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During the investigation, police arrested 24 accused, filed 18 chargesheets, disposed of 478 cases and traced 45 suspects operating outside Telangana. However, 165 cases remain under investigation as authorities continue to identify those involved in the organised network.
Young Professionals Targeted
The victim profile shows that men accounted for the majority of complainants. Of the 661 victims, 506 were men and 155 were women.
The age group between 26 and 35 years emerged as the most affected, with 308 victims, followed by 165 people aged between 36 and 45 years and 100 victims in the 18-25 age group.
Occupation-wise analysis showed that private-sector employees suffered the highest number of incidents, accounting for 343 victims. Another 145 victims were self-employed individuals, while 75 students also fell prey to the fraudulent loan apps.
Privacy Abuse And Harassment
Police found that after gaining access to victims’ mobile phones, fraudsters allegedly resorted to aggressive recovery tactics. Victims reportedly received threatening calls, while relatives, friends and professional contacts were also approached to create pressure.
Investigators found instances where personal photographs were misused, morphed images were circulated, locations were tracked and victims were threatened with public humiliation if they failed to make payments.
Police records indicate that two victims died by suicide after allegedly facing sustained harassment linked to illegal loan apps since 2022. In one incident, investigators invoked charges related to abetment to suicide.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said cybercriminals increasingly combine technology with social engineering to exploit financially vulnerable individuals. He advised users to verify the regulatory approval and authenticity of any digital lending platform before applying for a loan and avoid granting unnecessary mobile permissions.
