The Indian Cyber Crime Coordination Centre (I4C) has partnered with the National Internet Exchange of India (NIXI) to dismantle 379 websites hosting illegal loan and scam applications between October 2023 and May 2024, the Rajya Sabha was informed on Wednesday.
In addition to targeting illegal loan apps, I4C has identified and rendered non-functional 310 malicious/phishing domains and 91 fake websites to prevent abuse of ‘.in’ domains, according to the Minister of State for Home Affairs.
“I4C has also collaborated with industry for proactive detection of phishing websites on the internet through a technology-based solution,” said Minister of State for Home Affairs, Bandi Sanjay Kumar.
Moreover, I4C launched the Citizen Financial Cyber Fraud Reporting and Management System to facilitate the immediate reporting of financial frauds and prevent fund siphoning by fraudsters, he added. This system has saved over Rs. 2400 crore across more than 7.6 lakh complaints.
Additionally, a toll-free helpline, 1930, has been operationalized to assist citizens in lodging online cyber complaints.
Illegal loan applications in India have become a significant concern, particularly as their prevalence surged during the COVID-19 pandemic. These apps typically offer quick loans with minimal documentation, appealing to individuals facing financial difficulties.
However, they often impose exorbitant interest rates ranging from 20% to 30% monthly, coupled with hefty processing fees, leading to severe financial distress for borrowers. Reports indicate that many of these apps employ aggressive recovery tactics, including harassment and blackmail, which have resulted in emotional and psychological trauma for users
The majority of these illegal loan apps are either Chinese-owned or operated by Indian entities under the guise of legitimate lending. They often violate regulations set by the Reserve Bank of India (RBI), including unauthorized access to personal data and failure to adhere to prescribed lending norms.
The RBI has been directed to compile a whitelist of approved lending apps, which should only include those compliant with legal standards. In February 2023, the government banned 94 lending apps flagged for harassment and illegal practices.
