In recent news, Tech Giant Google has removed over 2200 fake loan apps from its Play Store. This has been done between September 2022 and August 2023. Speculations have it that the government is also taking measures to prevent fraud loan apps, and subsequently protecting people from scams.
The Minister of State for Finance Bhagwat K Karad, stated about the government’s joint move with the Reserve Bank of India (RBI) to tackle fraud loan apps.
Notably, Google has reviewed about 3,500 to 4,000 loan giving apps between April 2021 to July 2022, removing over 2200 fake ones. Between September 2022 and August 2023, Google continues to remove over 2200 fraud loan apps.
Further, Google has also updates its policy for loan providing applications on the Play Store. Only the apps from Regulated Entities (REs) or those under REs will be allowed to operate. Apart from this, there also additional guidelines, strictly to be followed by loan apps.
Meanwhile, the RBI has issued guidelines on digital lending to strengthen regulations and protect their customers. The Indian Cyber Crime Coordination Centre continues to monitor digital lending applications in order to prevent frauds from taking place. The Ministry of Home Affairs has also launched a National Cybercrime Reporting Portal along with a helpline number ‘1930.’ This helpline number can be used to report incidents of cybercrimes, including illegal loan apps.
The Government, RBI, and other banks are also conducting awareness campaigns through messages and radios among other methods to educate people more about cybercrimes. The electronic banking awareness and training programs by RBI focus on “fraud awareness” and “risk mitigation.”
It is noteworthy mentioning that the JanSamarth Portal has been introduced in order to simplify the process of loans under government schemes linked to credits. This provides financial assistance to several beneficiaries.
In spite of numerous efforts, many fraud cases related to UPI services were reported in the fiscal year 2022-23. These cases involved financial frauds up to Rs 573 crore. To avoid such situations, users are advised to research properly ahead of installing any app. These include checking eviews, verifying permissions during installation, and using secure payment channels. Further, one can also keep their devices updates and apps updated to remain cautious about loan terms in order to minimize the risk.
Ms Kalinga