Despite deaths linked to harassment, repeated police warnings and mounting public outrage, illegal loan apps continue to trap thousands across Telangana, with financial losses rising sharply this year.
Data from the Telangana Cyber Security Bureau (TGCSB) shows that money lost by loan app victims has jumped by a staggering 221 per cent in 2025 compared to the previous year, underlining the scale of the growing digital menace.
Loan app fraud among top cyber threats
As part of a statewide cybercrime awareness drive launched this week, TGCSB flagged illegal loan apps as one of the three biggest digital threats in the state, alongside investment scams and fake part-time job offers. The six-week campaign is being conducted in partnership with The Times of India as the media partner.
According to TGCSB data, 14,684 loan app-related complaints have been received so far in 2025 — the highest in the past three years — indicating that warnings have not deterred desperate borrowers or sophisticated fraud networks.
Youngsters and low-income groups hit hardest
TGCSB Director Shikha Goel said the most affected groups include youngsters, students, housewives and people with limited incomes.
“The loanees were targeted, harassed and their data was misused before finally causing financial loss by sustained torment,” she said, warning that psychological pressure is a key weapon used by fraudsters.
Losses triple in a year
The financial impact has escalated dramatically. In 2024, 12,589 victims lost ₹28.61 crore, a slight dip compared to 2023. However, in 2025, not only did complaints rise sharply, but the total amount extorted surged to ₹92.12 crore, nearly tripling within a year.
Officials said while a small section knowingly took risks hoping to evade repayment, many others turned to these apps out of desperation, unaware of the severe consequences.
How the trap works
Investigators explained that victims are typically lured through pop-up ads, messages and social media promotions promising instant loans with minimal paperwork and low interest. Once installed, the apps gain access to contacts, photos, messages and other personal data.
After disbursing small loan amounts, fraudsters demand exorbitant interest, issue threats and misuse personal data to intimidate borrowers as well as their family members and friends.
Awareness remains key defence
With complaints and losses climbing despite enforcement action, cybercrime officials said awareness and caution remain the only immediate defence. Citizens have been urged to avoid unverified loan apps and use only regulated financial institutions for credit.