Don't Fall Victim To ‘Salary’ Scam Promising Low Interest Rate Loans

A salary scam unravelled in 2022 has raised disturbing questions about the schemers' tactics to dupe victims. Here's how to protect you from such scams.
Don't Fall Victim To ‘Salary’ Scam Promising Low Interest Rate Loans

With recent hikes in bank loan rates, it is crucial to revisit a financial scam in 2022 that targeted unemployed individuals looking for low-interest-rate loans. Understanding the tactics used in the scam could help people avoid such frauds. At the core of the scam is the creation of a fictitious company, bogus salary accounts, and illegal possession of identity documents of individuals collected from them by promising low-interest-rate loans. Once the fraudsters procured the documents, they manipulated financial institutions to open fraudulent salary accounts in the names of the victims to secure loans, only to evade repayment and disappear later.


Always be suspicious of promises about low-interest loans or extraordinary financial gains. Safeguard your personal information, such as your Aadhar card and other sensitive documents. Be cautious about sharing such details. When approached by individuals claiming to represent a bank or financial institution, always verify the information directly with the institution. Thoroughly research and verify the authenticity of any company or individual before committing to financial agreements.

Salary Scam In Nacharam

In August 2022, four people were arrested for defrauding ICICI Bank's Telangana branches for Rs 1.3 crore. The main conman, Boda Srikanth, collaborated with three other accused in executing the scam.

Their scheme involved creating a fictitious company named 'Living Interior Design' using forged documents. The con artists enticed 53 unemployed individuals and homemakers from neighbouring villages by promising them low-interest loans. Srikanth collected their Aadhar cards under this pretence and established savings accounts in three ICICI bank branches in the villagers' names.

The accused credited salaries, ranging from Rs 1 to Rs 2 lakh, into the accounts of 34 credit card holders. The income levels were thus inflated, so the bank gave them higher credit lines. Thus, Srikanth managed to withdraw Rs 1.3 crore using these 34 credit cards. He then paid a small portion of it to cardholders to convince them that they got a loan at a low rate of interest. Eventually, Srikanth evaded repayment, and when the bank discovered the fraud, they reported the matter to the police, resulting in the arrest of the accused individuals. 

Srikanth had also established two other fraudulent companies and had deceived YES Bank, HDFC Bank, and various other banks using similar tactics.

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