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Key Takeaways
The arrest of six alleged cyber fraudsters in Greater Noida may appear like just another police case in the NCR crime diary. But beneath the headlines lies a far bigger story, one about India’s exploding digital lending market, rising unemployment anxieties, and the dangerous misuse of government welfare branding.
According to a report by The Times of India, the accused allegedly lured victims by promising subsidised loans under the Prime Minister Employment Generation Programme (PMEGP). Police said the gang used platforms like Instagram and Facebook to advertise Aadhaar and PAN card-related services before pitching fake loan offers.
The operation was reportedly being run from a high-rise apartment in Greater Noida’s Sector 1. Officials said the accused collected registration and processing fees from applicants and later became unreachable.
The PMEGP itself is a legitimate central government scheme administered by the Khadi and Village Industries Commission (KVIC) under the Ministry of MSME. The programme is designed to generate self-employment opportunities through micro-enterprises in manufacturing and service sectors.
Under official rules, beneficiaries apply through authorised banking channels and government portals. However, fraudsters often exploit the public’s limited awareness of the actual process.
Investigators say the accused first created trust through social media advertisements related to documentation services like PAN cards and Aadhaar assistance. Once contact was established, victims were allegedly offered “guaranteed” subsidised loans under PMEGP.
Police officials told Hindustan Times that applicants were allegedly asked to pay ₹3,000 as a registration charge and nearly ₹18,000 as insurance or processing fees. After collecting the money, the accused allegedly changed phone numbers or disconnected communication channels.
Authorities recovered mobile phones, registers containing customer data, and digital evidence during the raid. Cases under cheating provisions of the Bharatiya Nyaya Sanhita and sections of the Information Technology Act have reportedly been registered.
The worrying part is not merely the fraud amount. It is the sophistication of the ecosystem.
The accused allegedly understood a basic truth about modern India: people trust anything that sounds connected to a government subsidy. Add words like “PM scheme”, “guaranteed approval”, or “priority processing”, and desperation often overrides caution.
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Imagine a young unemployed man trying to start a small printing business in a Tier-2 city. A bank has already rejected his application once due to insufficient collateral. Then an Instagram advertisement appears promising “PM-backed loan approval within days”.
For someone under financial pressure, the offer does not feel like a scam. It feels like a second chance.
That is exactly where such rackets thrive.
Fraudsters are increasingly borrowing the language of governance. Instead of pretending to be lottery operators or foreign investors, they now imitate banks, fintech firms, and welfare schemes.
The psychological strategy is simple: exploit urgency, authority, and aspiration together.
This is not the first such operation uncovered in Noida. Over the last few years, police have busted several fake finance and call-centre setups allegedly involved in fraudulent loan approvals and insurance scams.
In one 2023 case, a fake company called “Finance Hub Group” allegedly duped borrowers by charging commissions for low-interest loans and issuing forged approval documents.
The repetition of these cases shows that enforcement alone is not enough.
In a household, more than 50% of people have shifted to online payments after the pandemic hit the country. Faster credit approvals, app-based borrowing, and online documentation have improved accessibility. But they have also created fresh vulnerabilities.
According to the Reserve Bank of India’s Digital Lending Guidelines, regulated entities must ensure transparent disclosure of fees, authorised recovery practices, and proper borrower consent.
Yet many borrowers still struggle to distinguish between legitimate lenders and unauthorised operators.
The rise of social-media-driven finance marketing has further blurred that line. A sponsored ad with a tricolour logo and the phrase “Govt Approved Loan” can easily appear authentic to first-time borrowers.
The Greater Noida case also reveals another troubling trend — organised cyber-enabled fraud using rented apartments and temporary infrastructure. Such groups operate with low fixed costs, quickly shift locations, and frequently replace SIM cards and payment channels.
The lesson from this case is not merely “avoid scams”. It is more specific.
No genuine government loan scheme guarantees approval through Instagram messages, WhatsApp chats, or advance processing payments to personal accounts.
Official PMEGP applications are processed only through authorised banking and government systems. Genuine lenders do not disappear after collecting registration fees.
For borrowers, especially first-time entrepreneurs, verification has now become as important as eligibility.
Because in today’s lending market, the biggest risk may not be loan rejection. It may be trusting the wrong lender in the first place.
What can an individual do against digital fraud?
Individuals should avoid sharing OTPs or banking details, verify links/calls carefully, and immediately report fraud to the bank and cybercrime helpline 1930.
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