The trap: inside the blackmailing scam destroying lives across India.

Hello. Excuse me, have you completed the payment?

The commitment was for a quick loan.

Disappointing situation!

Disappointing situation!

Disappointing situation!

Disappointing situation!

The reality is a distressing experience.

He presented me with those photographs, and I lost consciousness.

In everyone's contact list, there's usually a number capable of causing significant harm to their life.

I've lost count of the sleepless nights I've endured.

Throughout India, a minimum of 60 individuals have tragically ended their lives

due to mistreatment and extortion by loan applications.

I'm contemplating ending my own life, ma'am.

What's the purpose of continuing?

BBC Eye Investigations has delved undercover to expose the fraudulent practices

afflicting India.

Conduct yourself properly, or I will resort to violence!

Your sister is disrespectful!

Your mother is disrespectful!

This investigation aims to uncover individuals profiting from the suffering, fear, and shame of others.

Essentially, it's as if he's exposed, vulnerable in front of us.

It's a deceptive scheme,

a substantial one.

Deceitful loan applications are resorting to extortion.

A syndicate is providing loans through mobile applications.

When the borrowed money isn't repaid, individuals are subjected to humiliation.

In the past year, I began hearing accounts of individuals

who had taken loans from these applications

only to find themselves ensnared in a distressing web of blackmail and mistreatment.

I'm Poonam Agarwal,

a seasoned investigative reporter with two decades of experience.

Cracking this story proved to be a formidable challenge.

However, I eventually connected with a young individual

who claimed to have worked within the deceptive loan application scheme.

I believe he holds the key.

I hope you managed to stay dry.

Please safeguard my identity; I prefer to remain anonymous.

In a conversation with 'Rohan,' a pseudonym for confidentiality,

I inquired about his involvement in the loan application industry.

While I had previously recovered funds for numerous loan apps,

I was oblivious to the unsavory nature of the business.

Curious, I pressed him to divulge the inner workings.

Most interactions were routine, but when borrowers defaulted,

there were no limits to the measures taken for debt recovery.

The language used with customers was appalling,

filled with reprehensible remarks and threats.

I urged him to be forthright, emphasizing that gender should not be a barrier.

The verbal abuse extended to shocking suggestions like exploiting family members.

To unveil the scam, concrete evidence was crucial.

I proposed that Rohan wear a concealed camera to take us inside the operation.

However, Rohan hesitated, expressing reluctance to revisit that dark past.

Here's how the trap is laid:

An enticing message arrives, claiming approval for an instant loan.

Simply download the app, agree to the terms, and the funds are yours.

Unbeknownst to the borrower, they're already ensnared.

The app stealthily collects personal information, including ID cards,

photos, videos, and contact details of family, colleagues, and friends.

This marks the commencement of extortion.

The issue is escalating.

Tragically, three individuals, including a software engineer in Hyderab and a female agricultural officer, have taken their own lives.

In response, Mumbai Police have urged Google to remove 15 fraudulent loan apps from their Play Store.

Most victims remain silent, burdened by shame, but one courageous individual aims to caution others about the perils of a deceptive trap.

Expecting a payment that never arrived, Bhoomi Sinhaa faced urgent financial needs. The promise of immediate funds lured her into the world of loan apps. However, the reality proved harsh – a significant portion of the borrowed money disappeared in unspecified charges.

The nightmare deepened when the repayment timeline was abruptly shortened, leading Bhoomi to a cycle of taking new loans to settle previous ones, each accompanied by escalating charges and higher interest rates. Threats and harassment intensified, reaching a horrifying climax when morphed, nude images of Bhoomi were sent to her contacts.

The distress didn't stop there. Bhoomi moved from one loan app to another, receiving numerous calls each day. The situation became unbearable, leading her to contemplate suicide. The abuse extended beyond her, affecting her family and even her daughter. The emotional toll was immeasurable, with Bhoomi haunted by sleepless nights.

Tragically, the loan app crisis in India has claimed lives, with individuals, including a software engineer and a woman agricultural officer, succumbing to the pressure. Mumbai Police sought Google's intervention to remove fake loan apps from the Play Store.

Investigative reporter Poonam Agarwal, determined to unveil the perpetrators, uncovered a lead pointing to a company named DK Sky Tech. However, her pursuit hit a dead end when the office in Pune turned out to be abandoned.

Turning to an insider, Rohan, who had worked within the loan app scam, Poonam uncovered the shocking truth. The trap begins innocently – an approval message for an instant loan. Unbeknownst to borrowers, the app stealthily extracts personal information, leading to extortion and harassment.

The article delves into the systemic abuse by call centers recovering money for loan apps. Rohan's undercover operation exposed the appalling tactics employed by agents, including verbal abuse, threats, and humiliation. The emotional toll was vividly portrayed through the stories of victims, some of whom tragically ended their lives.

As the investigation continued, the focus shifted to the elusive figures behind these scams. Parshuram Takve, linked to the Asan Loan app, faced charges of extortion and intimidation. However, the scope extended to a web of companies, with Li Xiang emerging as a mysterious figure profiting from the misery of countless individuals.

Digital lending's prominence in India was highlighted, with significant players entering the market. The article also shed light on the abuse faced by borrowers from reputable fintech companies, emphasizing the need for regulatory intervention.

The piece concluded with a poignant reflection on the ongoing suffering caused by loan apps. Despite the exposure of the scams, Asan Loan continued its operations, illustrating the persistent threat to vulnerable individuals. Bhoomi, though scarred, began rebuilding her life, acknowledging the unwavering support of her daughter as a lifeline that prevented her from becoming another victim of the loan app crisis.