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Gang of Loan Fraudsters Arrested



The Anti-Bank Fraud Wing of the Central Crime Branch (CCB), Chennai, has busted a Delhi-based gang, which duped people with offers of hassle-free and low interest loans.

The gang allegedly conned people in Tamil Nadu, Andhra Pradesh and Kerala by collecting fees after promising them loans in the names of firms such as Tamilar Finance, Varalakshmi Finance and Bajaj Finance.

The CCB had registered a case on a complaint from Kanakalakshmi, of Pallikaranai, who lost ₹82,000. During the investigation, they stumbled upon more such complaints and the special team, after analysing call records and mobile phone tower locations, zeroed in on the accused in Delhi.

After camping in the national capital for the last 10 days, during which they searched in Dabri, Vikas Puri, Virender Nagar and surrounding areas, the team arrested M. Ashok Kumar, 28, A. Kamatchi, 30, of Dabri Main Extension, D. Rajavel, 25, of Palam, and Abhishek Pal, 24, of Mohan Garden. Mobile phones, SIM cards and records relating to bank transactions and other documents were seized from them. The four were produced before a court and brought to the city.

Modus Operandi

The criminals would randomly call people and introduce themselves as representatives of finance firms before making them a special loan offer. They would promise them hassle-free loans at very low interest rates. If the victim agreed, the call would be transferred to a person dubbed ‘master’.

The gang would then ask the victims to send documents over WhatsApp or e-mail, and then send them a fake loan approval letter. They would then ask them to deposit a fee in a particular bank account under file charges, refundable security amount and processing fees.

They would switch off their mobile phones after collecting the money.


Police sources said the gang procured SIM cards through agents using the identity proof of daily wage labourers at liquor shops and platform dwellers for ₹500 to ₹1,000, which they used to call their targets. They also opened bank accounts and obtained cheque books, credit/debit cards and SIM cards in the name of shelterless persons.

The police also suspect that the gang cheated people after receiving processing fees by posing as leading telecom service providers to lease out their land to set up mobile communication towers.

WeSeSo Advice

The following must be kept in mind to avoid being victim of Loan fraud:

  • Never disclose your personal details to the caller. After obtaining details of the offer, ask him to call back later. In the meantime, search for the official site of the loan disbursing company and contact its customer care for verification of such offer.
  • Never use the customer care number given by the caller. It may be fake.
  • Never fall for low interest loan from unknown financial companies. For known ones, it is better to make a visit to the nearest branch before making any payment.
  • The approval letters sent may be fake. It is better to get it physically verified either through calling customer care of the loan approving company or by visiting the nearest branch.
  • Never share your bank details, credit or debit card details, UPI pin or OTP with anyone, including the bank. 
  • Immediately call National Helpline Number 155260 if you become a victim and report on


WeSeSo Learning Foundation, a non-profit organization, aims to make a cyber-safe society with school students as the Agents of Change. If you find it useful then share it with others and help us secure the society because our motto is – We Secure Society.