During COVID-19. many users are facing a cash crunch. Taking advantage of people's compulsion to make fast money, Chinese apps have siphoned off money
Three people including a Chinese national were arrested in connection with instant loan apps fraud case in Telangana, informed Rachakonda Commissioner of Police, Mahesh Bhagwat on January 13.
One Chinese national, an Indian citizen, and one other were arrested, in connection with online instant loan apps fraud case.
During COVID-19. many users are facing a cash crunch. Taking advantage of people's compulsion to make fast money, Chinese apps have siphoned off money to the tune of Rs 21 thousand crores.
Meanwhile, Google has removed some lending apps aimed at consumers in India from Play Store in an attempt to safeguard users, it said in a blog post on Thursday.
Alphabet Inc`s Google has removed some lending apps aimed at consumers in India from Play Store in an attempt to safeguard users, it said in a blog post on Thursday.
"We have reviewed hundreds of personal loan apps in India, based on flags submitted by users and government agencies," Suzanne Frey, Vice President, Product, Android Security and Privacy said in the post.
A recent investigation by Reuters found at least 10 lending apps on Play Store breached Google`s rules on loan repayment lengths aimed at protecting vulnerable borrowers. It also found that a number of the lending apps also flouted central bank regulations designed to protect borrowers.
Google did not elaborate on the number of apps that had been taken down.
Google has contacted companies and asked them to clarify if they are compliant with the rules and regulations, failing which an app could be removed from the Play Store.
The online lending industry has come to the attention of the authorities after at least two suicides in the past month linked to alleged harassment by recovery agents of such apps.
Here is how Chinese apps are fooling its users, and siphoning off money.
1. Instant Loan App, a fraud?
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According to our partner site bgr.in, most Indians are using Instant Loan App these days. Most Instant Loan Apps are operated from China.
2. One click could be the buggest mistake of your life
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Instant Loan App claims to give you instant loan with just one click.
3. Rs 21 thousand crore have been sent to China
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Recently, Hyderabad Police has found a transaction of Rs 21 thousand crores in four different Chinese companies. Some of these transactions have taken place in bitcoins and have been sent abroad through hawala. Police have seized Rs 110 crore in various cases. At the same time, the ED is investigating the case of money laundering.
4. Some people have committed suicide
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Many people who have been trapped in the loan scheme of Instant Loan App have been forced to commit suicide. Police are investigating all these cases.
