Gurugram Police have busted a gang of cyber cheats who were extorting money from people on the pretext of providing small loans through China-based/funded loan applications, officials said on Saturday.

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According to the police, the culprits were running call centres in Gurugram and Noida. Four persons have been arrested in connection with the case though the police are yet to disclose their identity.

"The accused registered a company under dummy directors and were running call centres to extort money from people by harassing them," said a senior police officer.

During interrogation, it was revealed that the accused used to provide loans to needy persons and then recovered higher amounts by blackmailing them with chats containing derogatory remarks and morphed photographs.