Government Intensifies Crackdown, Blocks Over 43 Illegal Loan Apps

Federal IT Minister says that an awareness campaign should definitely be started to make people aware about such frauds, adding that people should also be vigilant and file complaints with PTA, FIA Cyber Crime, and local police

Following a series of recent incidents involving illegal and unregistered loan applications threatening and harassing borrowers with their private images and sensitive data, the government has finally decided to crackdown.

According to recent reports from the Federal Ministry of IT and Telecom, the government has banned over 43 illegal loan applications who were performing lending operations through unregistered applications on mobile devices.

In his statement Federal Minister for IT and Telecommunication ‘Syed Amin Ul Haque’ said that 43 loan applications have been blocked after instructions issued by the ministry, adding that the ministry had directed Pakistan Telecommunication Authority (PTA) Chairman Major General Hafeez Ur Rehman (Retd), to take action in this regard.

Commenting on the recent incidents involving loan applications harassing and assaulting people with private data, the Federal IT Minister said that an awareness campaign should definitely be started to make people aware about such frauds, while also adding that people should also be vigilant and file complaints with PTA, FIA Cyber Crime, and local police.

Haque also announced that the ministry has now contacted FIA to take strict and direct actions against such applications and that the FIA are now waiting for complaints.

Debt Driven Suicide

While illegal and unregistered loan applications have been under regulatory radars for quite some while, they were continuing to perform their operations, however a recent incident involving a ‘debt driven suicide’ further pushed governmental pressure and crackdown against these lending applications.

Muhammad Masood, 42, borrowed a small sum of PKR 13,000 using ‘Bharosa’, one of the many lending applications that have popped up lately. Attached with a skyrocketing interest rate, the pay back amount soon reached PKR 700,000.

Not being able to pay back the huge amount, Masood and his family were constantly pressured and threatened with their personal photos and data. Succumbing to the pressure, Masood ended his life and left behind a ‘suicide voice note’ and some proofs regarding the incident.

Taking immediate action against the incident Federal Investigation Agency (FIA) raided the Bharosa App office in Islamabad’s Sector G-8, seizing records, laptops, data devices and other equipment, while also launching an investigation against them.

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