Visakhapatnam: The Visakhapatnam city police have arrested a Kurnool resident for allegedly providing bank accounts used in an illegal instant loan app scheme, which led to the death of a resident in Maharani Peta, Visakhapatnam. The suspect reportedly earned Rs 12 lakh by supplying approximately 30 bank accounts used to process fraudulent loan transactions worth several crores.

The investigation began after a man from Maharani Peta died by suicide following harassment from loan app operators. The victim had borrowed Rs 2,000 through unauthorised instant loan applications but faced severe harassment despite making partial repayments. The perpetrators allegedly morphed his photos and circulated them among his contacts, causing extreme mental distress.

“The investigation revealed a sophisticated network spanning multiple states,” said police commissioner Shankhabrata Bagchi. The police found that the accused used Telegram to coordinate the supply of bank accounts, which were then used to process transactions from victims across India.

The probe uncovered a broader network with connections to Assam, Bihar, Gujarat, Haryana, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand, New Delhi, and West Bengal. The scam typically began with social media advertisements that prompted users to download APK files, which then accessed victims’ contacts and personal information.

The Vizag police have warned the public against using unauthorised instant loan applications. Victims of cybercrime can report incidents through the Cyber Crime Reporting Portal (www.cybercrime.gov.in), toll-free number 1930, or contact the commissioner of police at 7995095799.