Microfinance app scam busted, four firms raided

Cybercrime sleuths of the CID busted an online loan app racket and raided several firms offering instant loan to mobile users and collecting exorbitant interest rates.

The racket came to light on Monday following a complaint filed by a woman stating that she had availed loan from one of the apps and was later harassed despite repaying the loan amount. She came to know of a microfinance mobile application lending small amount of loans, and installed an app called “Paisa Loan”. She availed the loan and then repaid it on time.

Later, she availed loans from several other apps. But from November, even though she repaid the loan, agents of the apps started harassing her to pay extra interest amount, the police said.

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

Based on the said complaints, a raid was conducted by on four companies – Mad Elephant Technologies Pvt. Ltd, Borayanxy Technologies Pvt. Ltd., Profitise Technologies Pvt. Ltd., and Wizppro Solution Pvt. Ltd. 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, the police said.

Any victims of micro loan apps may contact Cyber Crime Division, CID.

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Sagar Biswas

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