Udupi: A 33-year-old automobile engineer from Gundmi in Brahmavar taluk has reportedly lost ₹4.37 lakh to cybercriminals after seeking a short-term loan through a mobile application. The victim, identified as Ranjan Shettigar, said he had been facing financial difficulties when he downloaded and applied for a seven-day loan using the Smart Rupiya Online Loan App in the last week of October. What began as a small loan request soon escalated into an elaborate case of extortion, intimidation, and fraudulent transactions that wiped out his savings.
Loan taken and repaid, but fraud followed
According to his complaint, Shettigar submitted all required personal details on the app, including his Aadhaar number, PAN, selfie photograph, mobile contact details and location. Shortly after the verification process, he received a loan of ₹12,000, which he repaid within six days. Believing the transaction to be legitimate, he did not suspect any fraudulent activity at that point.
However, things took a turn when he was allegedly targeted again, this time by unknown individuals who contacted him on WhatsApp and Telegram. They urged him to take additional loans, claiming that he was now eligible for higher amounts. When he refused to proceed, the cybercriminals allegedly began threatening to misuse his personal information.
Threats to leak personal data
Shettigar told police that the fraudsters claimed to have complete access to his phone data and warned him that they would upload his contacts, photographs and other personal information on social media platforms if he did not comply with their demands. Fearing embarrassment and potential misuse of sensitive information, he began transferring money to them in instalments.
Over a short period, he made multiple payments that together amounted to ₹4,37,253. The amount was transferred through various online modes, as instructed by the fraudsters. Each time he paid, they allegedly demanded more, continuing the cycle of intimidation and extortion.
Rise of loan app-related cybercrimes
Cyber officials note that such cases have sharply increased across Karnataka, with many victims falling prey to fraudulent instant loan apps that operate outside regulatory frameworks. These apps frequently lure users with quick approvals and minimal documentation but later resort to threats, harassment and extortion. Authorities repeatedly warn that many of these loan apps are not registered with the Reserve Bank of India (RBI) and function without legal approval.
In several cases reported in Udupi and neighbouring districts, victims have complained about apps gaining access to their contact lists, gallery files and device permissions, which are later used as tools for blackmail.
Police register case under IT Act
The Kota police have registered a case under Sections 66(c) and 66(d) of the Information Technology Act, which deal with identity theft and cheating by personation using electronic communication. Investigations are underway to identify the perpetrators and trace the digital trail of the transactions.
Officials stated that the case fits the pattern of organised cyber fraud rackets that operate across states and often have international links. They also urged the public to exercise caution while downloading financial apps and to verify whether platforms are RBI-approved before sharing sensitive personal data.
Appeal for awareness and caution
Police have once again stressed the importance of digital literacy and cautious online behaviour. Users are advised to refuse unnecessary permissions to apps, avoid clicking on unsolicited links, and immediately report suspicious activity. Victims of cybercrime are encouraged to file complaints on the National Cybercrime Reporting Portal (cybercrime.gov.in) at the earliest, as timely reporting significantly improves chances of recovery.
Conclusion
The incident serves as yet another warning about the growing sophistication of cybercriminals exploiting financial distress and digital vulnerability. As investigations continue, authorities say stronger public awareness and regulatory vigilance are key to preventing such frauds in the future.