Hyderabad: In view of the increasing number of fraudulent loan schemes being reported in Hyderabad, particularly investigated by central Crime Station (CCS), the Hyderabad police cautioned citizens to remain alert and exercise utmost vigilance in any interaction involving loans or financial advances.
During the years 2023-2025 a total of 25 loan fraud cases (2023 – five cases, 2024 – eight cases, and 2025 – 12 cases) reported at Central Crime Station. The key modes of fraud identified was that fraudsters pose as genuine loan providers (banks, NBFCs, cooperative societies) and collect personal identity documents like PAN, Aadhaar, bank details, or upfront charges from unsuspecting victims.
They demand “processing fees”, “account activation charges”, etc., but no loan is ever disbursed. Some pledge fake or already mortgaged collateral (e.g., imitation gold ornaments) to avail fraudulent “gold loans.”
Loan payments and repayments are diverted to fraudsters’ personal bank accounts, bypassing legitimate financial channels. Offenders use online modes such as WhatsApp, Telegram messages, fake websites, and impersonation of reputed financial institutions to cheat the public.
Referring to precautionary steps to be taken by the public, Hyderabad Police Commissioner VC Sajjanar advised the people to confirm the credentials of the financial institution before proceeding. Check their official website or verify through regulatory bodies if required.
He asked the people not to pay advance fees. Genuine lenders deduct service charges only after the loan is sanctioned and disbursed. They advised them to protect documents and never share PAN, Aadhaar, bank credentials, OTPs, or e-KYC data with unverified persons or online platforms.
Sajjanar advised the citizens to check collateral authenticity and personally inspect collateral like gold or property before pledging and beware of duplicate or re-used assets. He asked the people to always make loan-related payments through the verified official account of the lender only and ignore unsolicited offers. Avoid responding to loan offers received via random phone calls, SMS, WhatsApp, or social media, the police said.
Given the increasing frequency of fraudulent loan schemes registered and investigated by CCS, the police asked the public to exercise due diligence before entering into any loan-related transaction. Citizens are requested to verify credentials, read all terms carefully, and avoid sharing documents or making payments until the loan is legitimately sanctioned and disbursed.
In case of any suspicious activity or fraudulent offer, report immediately to the nearest police station or CCS.
