THIRUVANANTHAPURAM: Following the tragic death of Nitin Raj, a dental college student in Anjarakkandy, suspected to be driven by harassment from loan app agents, the Kerala Police have released a chilling report on the state’s escalating loan app menace. In the last three years, illegal loan app syndicates have swindled approximately ₹70 crore from residents of Kerala. These apps lure victims with the promise of “instant cash” without collateral, only to trap them in cycles of exorbitant interest rates and brutal blackmailing involving morphed obscene photos.
According to the police report, the Cyber Cell has received nearly 5,500 complaints, with the highest number originating from Malappuram district, followed by Ernakulam, Palakkad, Alappuzha, and Kottayam. The demographics of the victims are particularly concerning: 31% are low-wage employees in private firms facing financial hardships, while 20% are homemakers. The report highlights that one in every five victims is a woman, yet only 20% of those who seek help are willing to proceed with formal legal action due to social stigma.
Investigations reveal that the majority of these fraudulent financial operations are routed through Bihar and Rajasthan. Despite repeated crackdowns on hundreds of such applications, the fraudsters continue to operate by rebranding and launching new platforms. The police emphasize that the ease of a “single click” loan often leads to a life-threatening trap, and they urge the public to avoid unauthorized lending apps regardless of financial emergencies.
With input from News Agencies (IN).
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