Andheri GRP officers on Friday said they have arrested a Delhi-based fashion designer and his associate who worked for the loan app fraud’s masterminds in China as well as the gang operating the unauthorised applications. The duo transferred the money, which the recovery agents extorted from the innocent borrowers, to the masterminds in China, they added. mid-day, through a series of stories, has been instrumental in bringing forth the massive scam spread all over the country. 

The loan app scammers tempt gullible people to get instant loans, with just one click on their mobile phone, without any verification. They promise low interest rates and certain time for repayment, but as soon as the money is credited into borrowers' bank account, their recovery agents start hounding innocent people. The victims, who are threatened and blackmailed with morphed obscene photos, are forced to pay much more than they had borrowed.