• Fraudsters send fake emails, SMS, or messages claiming to be from banks.
• Victims unknowingly enter their banking credentials on fake websites.
• Using the stolen credentials, scammers apply for and withdraw loans in the victim’s name.
• Victims are left with huge debt and legal liability for loans they never applied for.

3. Unauthorized Instant Loan Approvals via Phishing (2024)

Steps of the Fraud:

1. Phishing Attacks:
   • Victims received emails or messages containing malicious links, purportedly from their banks, prompting them to update account information.
2. Harvesting Credentials:
   • Upon clicking the links, victims unknowingly provided their banking credentials on fake websites designed to mimic legitimate bank portals.
3. Unauthorized Loan Applications:
   • Fraudsters used the stolen credentials to apply for instant loans through the victims’ bank accounts without their knowledge.
4. Transfer of Loan Amounts:
   • Once approved, the loan amounts were immediately transferred to accounts controlled by the fraudsters.
5. Victim Notification:
   • Victims became aware of the fraud upon receiving notifications from their banks about loan approvals and disbursals they never initiated.