The instant loan apps are booming in India. The new entrants of late are the Chinese loan apps that misuse KYC details of Indians to setup fake bank accounts.
There are instances where accounts were created on crypto exchanges using KYC details of the loan defaulters. There have been cases of people saying that their KYC details, which were shared with the Chinese loan apps, were used to open bank and crypto exchange accounts in their names, without consent.
Some Chinese and proxies of Indians had been arrested as part of a crackdown on instant loan apps. In some States it is under investigation. There are such apps in Google Play Store which should not be downloaded.
However, cyber security researchers say many of these loan and betting apps are still operating with impunity. There could be many such fake bank accounts being used for crypto exchanges that we are unaware of.
It’s time the government takes a serious look at the situation and addresses the problem.
