Hyderabad Police Issue "Urgent Alert" Over Viral Loan App Scams: What You Need to Know

The Hyderabad City Police have issued a high-priority "Urgent Alert" following a massive surge in predatory digital lending scams. In March 2026, the Cyber Crime unit reported a 40% increase in cases where victims were blackmailed using morphed photos after failing to repay exorbitant interest rates on "instant" loan apps found on social media and third-party stores.

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The Modus Operandi: A Trap of Convenience

According to the Cyber Crime Wing (CCW), these apps lure middle-class individuals with promises of "Zero Documentation" and "Instant Approval" within minutes. Once the app is installed, it requests broad permissions to access the user's Contacts, Gallery, and Location.

• The Debt Trap: A loan of ₹5,000 is credited, but the user is asked to repay ₹10,000 within just seven days.

• The Harassment: If the payment is delayed by even an hour, automated bots and recovery agents begin calling everyone in the victim's contact list.

• The Morphing: In extreme cases reported this week, scammers used AI-generated "deepfake" images of the victims to threaten them with social disgrace.

Hyderabad Police "Safety Checklist"

The police have urged citizens to follow these strict guidelines before clicking on any loan advertisement:

1. Check NBFC Status: Only borrow from apps linked to a Reserve Bank of India (RBI) registered Non-Banking Financial Company (NBFC).

2. Avoid APK Files: Never download loan apps via WhatsApp links or third-party websites. Only use the official Google Play Store or Apple App Store.

3. Deny Excessive Permissions: No legitimate loan app requires access to your entire contact list or private photo gallery.

What to Do If You Are a Victim?

The Hyderabad Police emphasize that harassment is a crime, regardless of the debt. If you are being threatened:

• Do Not Pay More: Paying "extension fees" only emboldens the scammers.

• Report Immediately: Call the National Cyber Crime Helpline at 1930 or visit www.cybercrime.gov.in.

• Local Contact: You can reach the Hyderabad Cyber Crime Station at +91 40 2326 0003.

Source / Resource:

Official advisory issued by the Hyderabad City Police Cyber Cell (March 2026) and RBI Digital Lending Guidelines. https://www.hyderabadpolice.gov.in/