HIGHLIGHTS

The fraud began in October 2023 when the victim received a call from Anil Yadav, who claimed to offer a significant loan.

Yadav promised a Rs 10-crore loan at a remarkably low interest rate, but there was a catch: the victim had to first purchase a health insurance policy.

Following this, a woman named Tiwari contacted the victim, requesting Rs 5 lakh to secure the policy.

Financial scams have evolved into a major problem, especially those revolving around loans. A shocking incident that took place in Andheri, Mumbai, serves as a grim reminder of these dangers: a 70-year-old man lost over Rs 1.1 crore in a low-interest loan fraud that lasted nearly a year. Below, we delve into the details of how this scam unfolded and share essential tips on safeguarding yourself against similar financial exploitation.

The origins of this fraud trace back to October 2023, when the victim received a phone call from a man named Anil Yadav, who presented himself as an executive at a fictitious financial institution based in Delhi. Yadav pitched an enticing offer: a Rs 10-crore loan at a very low interest rate, but with a specific stipulation— the victim was required to purchase a health insurance policy before the loan could be processed.

Shortly after this conversation, a woman who identified herself only as Tiwari reached out to the elderly man, asking for Rs 5 lakh to facilitate the purchase of the insurance policy. Trusting Tiwari and the arrangement, the senior citizen completed the transaction through an online transfer. However, he was met with disappointment as he received no clear communication regarding the disbursement timeline of the promised loan.

In May 2024, the situation took another turn. A man named Mayank Gupta, claiming to be associated with the Bengaluru branch of the same institution, contacted the complainant. Gupta offered an enticing alternative, stating that if the victim were to apply for the loan from Bengaluru instead of Delhi, he would only need to pay a 10 percent commission instead of the previously mentioned 20 percent, according to reports from TOI.

As the scam progressed, Gupta made it known that there were some errors in the complainant’s loan application that needed rectification—errors for which additional payments were required. Continuing to believe that his loan was still being processed, the senior citizen complied with these new demands, making several additional payments.

To further perpetrate their scheme, the fraudsters sent the victim various official-looking documents, including a demand draft memo, a breakdown of bank settlement charges, and a No Objection Certificate (NOC). Additionally, the victim was introduced to a supposed “general manager” of the financial institution, who reassured him that the loan disbursement was imminent.

Under diverse pretexts, the scammers managed to extract a staggering total of 68 transactions from the victim, culminating in a loss of Rs 1.14 crore. Ultimately, when the promised Rs 10-crore loan failed to materialize, the elderly man became aware of the deceit and sought help from the cyber police.

Strategies to Avoid Falling Prey to Such Scams

• Verify Financial Institutions: Always ensure the credibility and legitimacy of any lender before proceeding with any monetary transactions.
• Be Wary of Upfront Fees: Legitimate loans typically do not require large upfront payments or deposits.
• Double-Check Documentation: Exercise caution and do not automatically trust documents that appear official but are received via phone or email.
• Consult a Trusted Advisor: Before making any financial decisions, especially ones involving large sums of money, seek advice from a financial expert or trusted family member.
• Report Suspicious Calls: If you encounter any suspicious calls regarding loans or financial offers, make sure to report them to the cyber police promptly.