Did you know a Pre approved Insta Personal Loan will be credited in your savings bank account with just one click. No OTP, No 2FA, no additonal document required, no security / collateal or guarantee required. Based on your credit rating high value loan are available at just one click.

My client lost around Rs 70 Lakhs in a sophisticated ‘Authorised Push Payment Fraud (APP Fraud) by fraudsters posing as the representatives of the Mumbai NCB Department for Cyber Crime Investigations and Money Laundering Cases Investigation Department

At the time of the scam, the client had a credit balance of Rs 10 LAKHS in his savings Bank account. The fraudsters who had gained access to the client’s savings bank account ‘approved’ the offer of Pre Approved Insta Personal Loan available on the savings account and a loan amount of Rs 60 LAKHS was credited instantly ready to be siphoned off. Which means a loss which could have been limited to Rs 10 Lakhs became of Rs 70 LAKHS in the Bank’s eagerness to do business. Now it’s a double whammy for my client. The fraudsters fled with the money and the Bank is after the client for recovery of the loan which my client never wanted in the first place.

My client had not applied for any insta personal loan from the bank or authorized the sanction or disbursement of any insta personal loan/loan. My client had no knowledge or notice of the availability of any such facility or any such pre-approved loan available on the savings account.

Aren’t the Banks in the eagerness to do business, jeopardizing the safety and security of their customer’s money and exposing the customers to high value risks despte having a fiduciary duty to protect and exercise due care and caution. Can the conduct of the Banks be equated to loan sharks where the loan credits are made in Bank accounts without adequate authorizations and the recovery mechanisms are aggressive and harsh with unconsionable rates of interest and penalty

I urge you all, beware of the ‘Authorised Push Payment Fraud (APP Fraud) and check your savings accounts for the pre approved loan offers and disbale them if you don’t need a loan.

Dear Banks, please wait for the customers to ask for the loan and then make an offer and the disbursement with at least a two factor authentication. If other service providers can send a alert when accounts have been accessed from unusual IPs, why cant the Banks check if the high value loan approvals are from the regualr IP or otherwise?

More questions than answers at the moment

During an APP scam, criminals manipulate their victims into making payments, or sharing personal details, under false pretences. Often fraudsters will pose as well-known legitimate business or government body in order to win a victim's trust.