Loan App Fraud & Cyber Law

1. What is Loan App Fraud?

Loan app fraud involves deceptive apps offering quick loans. Users unknowingly give these apps access to their personal data while downloading them. If loans are unpaid, the apps use this data, harass borrowers, embarass them and their contacts to coerce repayment.

2. Real-Life Story

Kirni Mounika, a 24-year-old civil servant, borrowed from 55 loan apps, initially taking a ₹10,000 loan which spiraled to over ₹3,00,000. Despite repaying, she faced relentless harassment from these apps, which contacted her friends and family, leading to immense stress.

3. The Emotional Toll

Victims experience:

❌ Severe stress
❌ Public humiliation
❌ Financial strain
❌ Privacy Invasion
❌ Deep fear
❌ Depression
❌ Loneliness

4. Our Secret Tips

✅ Verify app legitimacy
✅ Don’t randomly share data
✅ Choose recognised institutions
✅ Borrow only what you need
✅ Report to the authorities

5. Cyber Law in Action

Section 66D of the Information Technology Act: Cheating by personation by using computer resource

Section 72 of the Information Technology Act: Penalty for Breach of confidentiality and privacy

Section 316 of the Bharatiya Nyaya Sanhita: Criminal breach of trust

Section 318 of the Bharatiya Nyaya Sanhita: Cheating

Section 351 of the Bharatiya Nyaya Sanhita: Criminal intimidation

Section 356 of the Bharatiya Nyaya Sanhita: Defamation