Fraud through YONO app in Bhatkal; Loan sanctioned, transferred without customer consent

Bhatkal: A new form of digital banking fraud has come to light in Bhatkal, where a loan was allegedly sanctioned through a mobile banking app without the account holder’s consent, raising concerns among residents across the district.

According to the complaint, a government employee working in a department in Bhatkal taluk found that his mobile phone had allegedly been hacked and a pre-approved personal loan of around Rs 8 lakh was taken in his name through the YONO app of the State Bank of India. The loan amount was reportedly transferred in five instalments to other bank accounts within a short span of time.

The victim has stated that he did not apply for any loan and did not share any OTP, digital consent or signature. He said that even during a visit to the bank, the YONO app was not accessible on his phone. However, shortly after returning home, he received messages stating that a loan had been sanctioned. On checking his account, he found that the loan had been availed through the app without his knowledge.

The incident has raised questions about the safety of digital banking platforms, as it is not yet clear how such a large transaction was carried out without the customer’s direct authorisation.

Reacting to the incident, the manager of the SBI branch in Bhatkal, Manasa Bhat, said the YONO app itself is secure and that the issue appears to have arisen due to the victim’s mobile phone being compromised. She said the app offers pre-approved personal loans to eligible customers and that fraudsters may have misused this facility after gaining access to the phone.

She also noted that the same account had earlier been involved in a smaller UPI-related fraud and that greater caution should have been exercised at that stage. The account has now been placed on hold and the remaining funds have been secured, she added.

The case has triggered a wider discussion on whether the incident points to individual negligence or gaps in digital banking safeguards. The sanctioning of a loan of this size without OTP or additional authentication has caused concern among customers.