The Hyderabad police on Saturday issued a public advisory urging citizens to remain cautious amid a surge in fraudulent loan schemes, with the Central Crime Station (CCS), Detective Department (DD), recording 25 loan fraud cases between 2023 and 2025.
Officials reported five cases in 2023, eight in 2024, and 12 in 2025, indicating a steady rise in such financial scams.
According to the police, fraudsters are posing as representatives of legitimate banks, non-banking financial companies (NBFCs), or cooperative societies to deceive unsuspecting borrowers. Victims are typically asked to share personal documents such as PAN, Aadhaar, or bank details, or to pay upfront fee under various pretexts – including processing charges or account activation. Once payments are made, no loans are disbursed.
Investigations have also revealed instances where fraudsters pledged fake or already mortgaged gold ornaments to secure fraudulent “gold loans.” In several cases, loan payments and repayments were found to have been diverted to personal bank accounts controlled by the offenders, bypassing official financial channels.
The scams are often executed through online modes, including WhatsApp and Telegram messages, fake websites, and impersonation of reputed financial institutions. The police have warned that such frauds typically rely on building trust quickly before coercing victims into parting with sensitive financial information or transferring money.
Citizens have been advised to verify the authenticity of lenders through official websites or regulatory bodies before applying for loans. The police cautioned against paying any advance or service fee prior to loan disbursement and emphasised that genuine institutions deduct such charges only after sanctioning loans. Borrowers were also urged to safeguard their identity documents, inspect pledged collateral personally, and use only verified payment channels.
The police said people must remain vigilant, avoid responding to unsolicited loan offers received through phone calls, messages, or social media, and report any suspicious or fraudulent activity immediately to the nearest police station.
Published – November 01, 2025 07:24 pm IST
