Loan Scams Using Government Scheme Names Exposed in India

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Systematic Cyber Fraud Racket Busted, Seven Accused Arrested

A sophisticated cyber fraud racket that promised bank loans and government benefits to vulnerable individuals has been dismantled by the Gorakhpur police.

How it Worked:

The gang targeted unemployed and financially struggling individuals, promising to facilitate loans or secure benefits under government schemes.
In exchange, victims provided their Aadhaar cards and other essential documents.
The gang then used these to open new bank accounts or gain access to existing ones, retaining control over passbooks, ATM cards, cheque books, and SIM cards.

According to investigators, the gang conducted transactions worth crores through these compromised accounts, with some victims being offered commissions for allowing the use of their bank accounts.

The racket was exposed when a school teacher complained about the misuse of his bank account, leading authorities to freeze the account and launch an investigation.

Seizures and Arrests:

During raids and interrogations, officials recovered 10 mobile phones, one tablet, two laptops, eight forged seals, 28 signed cheques, four passbooks, three ATM cards, and two cheque books from the accused.
The seizure suggests that the gang was equipped to create forged documents and execute financial fraud operations.

The probe also revealed that the gang facilitated loans using fake documentation, including forged stamps related to revenue and other departments. Authorities are now examining how many such fraudulent loans were processed by the gang.

Seven individuals have been arrested in connection with the racket, including Dhruv Sahani, Suraj Singh, Ajay Upadhyay, Akhand Pratap Singh, Brijendra Kumar Singh, Abhishek Kumar Yadav, and Amar Kumar Nishad. Efforts are ongoing to track down three additional suspects who are believed to be hiding in different parts of the state.

Renowned cybercrime expert Prof. Triveni Singh warned that in such cases, cybercriminals rely on social engineering tactics to lure individuals into sharing sensitive information. He advised the public to never share bank account details, ATM cards, or personal documents with unknown individuals under any circumstances.

The bust of this racket marks a significant victory in the fight against cybercrime, and further investigation is underway to identify the full extent of the operation and bring all those involved to justice.