The Ministry of Information Technology and Telecommunications (MoITT) has made an important step by cracking down on unlawful loan apps operating in the country.
As a result, 43 apps in this category were immediately disabled. According to Syed Amin Ul Haque, Federal Minister for Information Technology and Telecommunications, the ministry has quickly issued directives to restrict these apps.
Furthermore, the minister underlined the significance of establishing an awareness campaign to keep individuals from being victims of such fraudulent acts.
Individuals should also report complaints to relevant authorities, such as the PTA, FIA Cybercrime, and local police, so that necessary action can be taken against these illicit loan apps, according to the statement.
According to MoITT, the IT minister has also communicated with the FIA, instructing them to take action against such elements rather than waiting for complaints.
Many scammers are posting “easy loan” applications on Google Playstore and Apple istore in a rising trend; nevertheless, as quick and handy as the loans may appear — given that they do not require lengthy paperwork — these applications are proving to be a threat to countless people.
The suicide of a jobless man in Rawalpindi earlier this week has brought to light yet another swindle.
Experiences like his are becoming more common as more individuals in the country of 220 million turn to dozens of mobile-based lenders, providing a breeding ground for scammers and fraudsters, according to digital rights and consumer protection groups.
According to a poll conducted earlier this year by the organisation Karandaaz Pakistan, the number of Pakistanis using personal finance apps more than doubled to 19% in 2022 from 12% two years earlier, improving low rates of financial inclusion.
FIA’s moves against loan apps
Meanwhile, the FIA has opened 74 cases for inquiries on complaints lodged by affectees and three FIRs against persons and corporations during nationwide operations against illicit loaning enterprises.
It arrested 17 people from various places who were running unlawful Internet loan schemes and blocked 30 accounts.
According to an FIA official, the FIA’s cybercrime department has sealed five offices of organizations participating in this unlawful conduct.
Mohsin Hassan Butt, Director General of the FIA, has urged all field units in the cyber crime wing to take strict action against organisations and individuals offering loans through unregistered and unlawful mobile applications.
When contacted by our correspondent, the FIA DG stated that he had requested for strong punishment against anybody involved in such illegal money transactions.
“Companies obtain the licence from SECP for online loan payment apps,” the DG explained, adding that the SECP is the registration and regulatory authority that issues licenses to non-banking financial businesses (NBFC) to provide loans via online apps.
Furthermore, the PA) works with Apple and Google to remove unlawful microfinance apps in Pakistan.
The crackdown is being carried out throughout Pakistan, according to DG FIA, who advised citizens to visit the SECP website to see whether the company app is licensed.
