Dhani fake loan episode: Some time back, the Reserve Bank of India (RBI) had to step in and framed new rules after the cases of suicide due to harassment of app-based digital lenders came in the headlines. But, now fraud cases involving digital lenders have become a cause of concern for the policymakers. In most cases, the victims were ordinary consumers, falling prey to app-based lenders.
Reports suggest that these frauds were mainly related to the leakage of information related to important personal accounts. The latest case involving Indiabulls-owned Dhani Loans and Services app has added to the problem and exposed the flaws in the digital lending world.
Know what is the matter?
In the past few days, many users have complained of misuse of their PAN card details by unknown people on the platform to avail loans, some have complained about the collection agents sending show cause notices for loans which they have taken. Never took it. There have also been complaints of impact on credit score by users.
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how worrying is the issue
This gives indications of data theft and financial fraud. Of course, there is a case of fraudulent loan taking which is a very serious allegation. In case of non-repayment of loan, the collection agents start harassing the original owners of the PAN card. Those affected include actress Sunny Leone, who has alleged identity theft to take fake loans.
This is the reaction of Dhani
A Dhani spokesperson said, “We have come to our notice of a few cases of unknown persons using someone else’s PAN card and identity for taking loans through fintech operations on the app.”
The spokesperson said, “We have taken necessary steps in these matters and are talking to all the complainants. We are also correcting their records with the credit bureaus.”
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Dhani said in a statement, “Identity theft cases are on the rise. Our risk management and tech team is working. We are developing more robust systems, so that such activities can be stopped.
But, the question arises as to how the data leakage happened after Dhani was linked to global security platform G-Defense.
Actually this is not the only case. The RBI recently admitted that it had identified digital fraud as one of two major challenges, the other being cyber fraud, in preparation for the launch of a central bank digital currency. This was mentioned by RBI Deputy Governor T Rabishankar on 8 December.
New challenges for RBI
Digital frauds pose many challenges for the new age banking channels. Companies have to address these challenges with business and improve their technology platforms to prevent data theft, misuse.
In January this year, RBI has created a fintech department to focus on this sector. However, the bigger question is whether RBI has enough infrastructure and manpower to address the rapidly growing challenges in the digital lending sector.
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