Hyderabad: The Hyderabad police on Saturday, November 1, cautioned the public against loan fraud, stating that 25 such cases have been registered from 2023-2025.
According to Hyderabad police, loan fraud has risen in the last two years.
In 2023, police recorded five cases of loan fraud, eight in 2024 and 12 in 2025, so far. Cases have been registered by the central crime station and the detective department in Hyderabad.
Common modus operendi
Fraudsters pose as genuine loan providers (banks, NBFCs, cooperative societies) and collect personal identity documents (PAN, Aadhaar), bank details, or upfront charges from unsuspecting victims. They demand “processing fees”, “account activation charges”, etc., but no loan is ever disbursed.
Some pledge fake or already mortgaged collateral, such as imitation gold ornaments, to avail fraudulent “gold loans.” Loan payments and repayments are diverted to fraudsters’ personal bank accounts, bypassing legitimate financial channels.
Offenders use online modes such as WhatsApp, Telegram messages, fake websites, and impersonation of reputed financial institutions to cheat the public.
Public advisory
In an advisory to the public, the Hyderabad police said, “Verify the lender: Confirm the credentials of the financial institution before proceeding. Check their official website or verify through regulatory bodies if required.”
Do not pay advance fees: Genuine lenders deduct service charges only after the loan is sanctioned and disbursed. Protect your documents: Never share PAN, Aadhaar, bank credentials, OTPs, or e-KYC data with unverified persons or online platforms.
Check collateral authenticity: Personally inspect collateral like gold or property before pledging; beware of duplicate or reused assets.
Use official channels for repayment: Always make loan-related payments through the verified official account of the lender only. Ignore unsolicited offers: Avoid responding to loan offers received via random phone calls, SMS, WhatsApp, or social media.
