Chandigarh Police arrest 3 in connection with Loan App Scam

The Cyber Cell of Chandigarh Police arrested three men—Manoj Rathore (43), Punit Kumar (44), and Ashish Kakkar (33)—for scamming people through fake online loan apps. All three accused are residents of Delhi. This case has been ongoing since September 2022, with police having previously arrested 29 others, including tele-callers, account holders, handlers, and even a Chinese national. Police have recovered ₹17 lakh and digital devices connected to the scam.

The accused were caught on December 29 and 30, 2024, and were placed in police custody for three days for further questioning. Investigations revealed that the scammers used apps like "Hugo Loan," "Coin Cash," and "AA Loan" to target victims by accessing their personal data and blackmailing them into paying money.

How the scam worked

The case began when a Chandigarh resident filed a complaint in 2022. He received an SMS with a link to download the "Hugo Loan" app. When he installed the app, it accessed his contacts and photo gallery. Although he didn’t apply for a loan and uninstalled the app, he soon began receiving threats via WhatsApp from unknown numbers. The scammers used morphed images of his family to blackmail him, threatening to send these pictures to his contacts unless he paid money.

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Police discovered that the scammers were running multiple such apps and using social media platforms like WeChat, Dingtalk, and GB WhatsApp for harassment. The money extorted from victims was routed through a shell company set up using fake documents. Puneet Kumar and Ashish Kakkar, who managed the company, were previously arrested under the Prevention of Money Laundering Act (PMLA) by the Enforcement Directorate.

This case highlights the risks associated with online scams and the importance of cybersecurity awareness. Authorities continue their investigation to uncover more details and protect others from falling victim to similar frauds.