The incidence of banking fraud is increasing rapidly, with fraudsters finding different ways of stealing people’s money. However, now fraudsters are luring people into a cheap loan scam that is helping them loot people’s money. Students are not even safe, as fraudsters are scamming them under the pretext of providing scholarships.
One such incident has come to light in Bangalore, where the CEO of a firm has been arrested for allegedly scamming close to 2,000 students out of Rs 18 crore, under the guise of student scholarships and low-interest loans. The company management scammed every student for more than Rs 2 lakhs each.
The entire fraud was exposed after a 26-year-old student who participated in the company’s 24-month data course last year filed a complaint. Following the student’s complaint, the CEO of the firm, named Srikanth, was arrested. Investigations are still ongoing to arrest the key officials involved in the scam.