Cyber Police have arrested a software engineer from Bhopal in connection with the alleged Rs 200 crore mobile application scam, which is suspected to have cheated nearly five lakh people across the country. According to the police, the accused developed the mobile application, which advertised instant online loans of up to Rs 15,000 through social media. Thousands of people downloaded the app after seeing these advertisements. Police said that once the app was installed, it gained access to users’ mobile phones and collected their personal data. The fraudsters allegedly used this information to threaten and blackmail borrowers. After giving a loan of Rs 15,000, the gang allegedly forced victims to pay between Rs 25,000 and Rs 50,000. If they refused, the accused allegedly threatened to circulate their personal information and photographs on social media.

 

The fraud came to light after two Nagpur residents lodged complaints with the Cyber Police. Based on the complaints, police registered a case under cheating and relevant provisions of the Information Technology Act and began an investigation. During the probe, the Cyber Cell traced the gang’s links to Bhopal. A police team travelled there and arrested one of the accused, who is a software engineer believed to have developed the app. He was brought to Nagpur for further investigation. Police suspect that the racket had been operating for the last eight months. Investigators believe nearly five lakh people downloaded the app and that the gang used VPN services to hide its identity while carrying out the fraud across the country. The Cyber Police estimate that the scam may have caused losses of around Rs 200 crore. Further investigations are underway.