A big percentage of instant loan apps have actually the software that is same – but various frontend branding.

Chinese investors then bring these apps to India with proxy directors.

Bhumana Prasad, a resident of Hyderabad, took that loan of Rs 3,500 from ‘My Bank’ – a lending that is digital – in November 2019. Within a week, he repaid the total amount along side interest, and quickly, took another micro-loan, of Rs 4,400, through the exact same software. In just a couple of days, nonetheless, Bhumana noticed one thing strange. There was clearly Rs 26,000 deposited in the SBI bank-account from various sources – particularly, 14 different financing apps them started harassing him, demanding a repayment totalling Rs 44,000 that he had never downloaded – and very soon, all of.

Just just just How did these apps ‘lend’ money to Bhumana? and just why? Police genuinely believe that ‘My Bank’ shared other apps to his details run by the exact same business – Jhia Liang tech in Pune. In terms of the why detectives and specialists state that this will be the main modus operandi used by fraudulent instant loan apps. They gather your individual information, usage that individual information as security to govern and harass you, and employ other predatory solutions to gather high-interest rates – often going as much as also 200 or 500%. Continue reading →