Delhi cops bust digital loan-sharks who stole Rs 350 crore, cheated 1,977 people

Delhi Police have succeeded in busting a gang of cheats involved in duping over 1,977 people across India to the tune of Rs 350 crore using a fraudulent loan app called ‘Cash Advance’. A team of IFSO ( Intelligence Fusion & Strategic Operations), Special Cell of Delhi Police busted the gang. Six people have been arrested so far on allegations of cheating. It is also alleged that the gang members were involved with dubious cryptocurrency exchances.  

Deputy Commissioner of Police (DCP) IFSO, Prashant P Gautam said the accused have been identified as Mustajab Gulam Mohammed Naviwala (32) and Anisbhai Ashrafbhai Vinchhi (51), both natives of Gujarat, Ashok (36), Balwant (39) and Nitin (24), all residents of Delhi and Gokul Biswas (53), a native of West Bengal.

At the time of arrest, police recovered seven mobile phones, one laptop and 15 debit cards. The 24-year-old Nitin is said to be the mastermind behind the racket. He used to work at a Chinese loan app company earlier. 

102 complaints against one app

According to DCP Prashant P Gautam, a man named Jai Goyal, a resident of Model Town in New Delhi, had alleged that some miscreants are involved in extortion and blackmail pm the pretext of providing instant loans through an app. Upon going through the National Cybercrime Reporting Portal (NCRP), they found 102 complaints against the same app. "After preliminary inquiry, a case under relevant sections was lodged by the special cell, Delhi and investigation has been taken up," the DCP said.    

IFSO, Special Cell @DelhiPolice has busted a gang of cheats involved in fraudulent loan app called “cash advance”. 06 persons arrested who cheated 1977 people across India.
Transactions of ₹ 350 crores and dubious crypto exchange have come on record. ₹ 60 lakhs frozen. pic.twitter.com/9nuMr4VlKJ

— IFSO/CCU Delhi Police (@DCP_CCC_Delhi)

A team led by sub-inspector (SI) Sonam Joshi mulled through several bank accounts and found links to companies and proprietorships across the country, including in Delhi, Surat, Kerala and Kolkata. However, the directors of these companies could not be traced. A comprehensive analysis helped trace the accused and cops raided several locations to find them. 

Modus operandi of the fraud

In course of interrogation, the accused have disclosed that the gang offered short term loans through a mobile app called Cash Advance. In this process, they would access personal data of their victims at the stage of installing the applications. After transfering the loan amount digitally, the app would exorbitantly raise interest rates. Even if a person managed to pay back the loan, they would be asked for more money and blackmailed with obscene, morphed images. 

Police have also found that the accused allegedly registered fake companies and opened bank accounts through fraud. According to data shared by the Delhi Police, the accused have been found to have duped people to the tune of Rs 350 crore, out of which Rs 83 crore out of which Rs 83 crore was disbursed as micro loans. Further investigation is underway.