A 21-year-old software professional from Tarnaka, Hyderabad, has alleged that recovery agents of various loan apps extorted over ₹9.8 lakh from him by threatening to circulate his morphed nude photographs among his friends and relatives.
How the Fraud Unfolded
The complainant stated that he began taking small loans from multiple loan apps, including Repay Loan, Cashe, mPokket, My Money Bazar, Ram Fin Corp, Lending Plate, Pocketly, and Ring, in October 2025. The total amount credited to his account through these apps was approximately ₹1.91 lakh.
Shortly after availing the loans, unidentified callers claiming to be recovery agents started demanding payments with exorbitant interest rates that far exceeded the actual dues. The victim alleged that the callers repeatedly contacted him via WhatsApp calls and messages, using abusive language. They also accessed his phone contacts without consent and contacted his relatives and friends.
Morphed Photos Used as Threat
The complainant further alleged that the accused created morphed obscene photos of him and circulated them among his phone contacts whenever he refused to pay the demanded amounts. Under pressure and fear, he transferred more than ₹10 lakh by the end of May 2026, resulting in a net loss of over ₹9.88 lakh.
Police Action
As the harassment continued despite the payments, the victim approached the Hyderabad cybercrime police and lodged a complaint. The police registered a case under Sections 66C and 67A of the IT Act and Sections 308(2) (extortion) and 318(4) (cheating) of the Bharatiya Nyaya Sanhita (BNS).
This incident highlights the growing menace of predatory loan apps that trap users with easy credit and then resort to illegal recovery methods, including harassment and extortion. Authorities advise borrowers to verify the legitimacy of loan apps and report any suspicious activity to the cybercrime cell immediately.
