ISLAMABAD: The Ministry of Information Technology and Telecommunication (MoITT) has taken a major step by launching a crackdown on illegal loan apps operating in the country, JEE News reported on Tuesday.
As a result, 43 apps in this category have been blocked immediately. According to Federal Minister for IT and Telecommunication Syed Aminul Haq, the ministry has swiftly implemented the instructions to block these apps.
Furthermore, the minister stressed the importance of launching awareness campaigns to prevent people from falling prey to such fraudulent activities.
The statement added that individuals should report complaints to relevant authorities including PTA, FIA Cybercrime and local police so that appropriate action can be taken against these illegal loan apps.
According to the MoITT, the IT minister has also approached the FIA to take action against such elements instead of waiting for complaints.
In a growing trend, many scammers are launching “easy loan” applications on the Google Play Store and Apple iStore. However, as easy and convenient as the loans seem — because they don’t require extensive paperwork — these applications are proving to be a risk for countless people.
The suicide of an unemployed man in Rawalpindi earlier this week has brought yet another scandal to light.
Digital rights and consumer advocacy groups say experiences like this are on the rise as more people in the country of 220 million turn to dozens of mobile-based lenders, opening up more to scams and fraudsters. Fertile land is being created.
Reflecting the rise in smartphone usage, the number of Pakistanis using personal financial apps doubled to 19 percent in 2022 from two years earlier, adding to low rates of financial inclusion, Car Anaz Pakistan said. A survey earlier this year by the non-profit organization found.
FIA’s move against loan apps
Meanwhile, the FIA registered 74 cases for inquiry on complaints filed by victims and registered three FIRs against individuals and companies during its nationwide crackdown on illegal lending companies.
It arrested 17 suspects operating illegal online loan schemes from different cities and blocked 30 accounts.
The FIA Cyber Crime Wing has sealed five offices of companies involved in this illegal activity, an FIA spokesperson said on Monday.
FIA Director General Mohsin Hasan Butt has directed all field units of the cyber crime wing to take strict action against lending companies and individuals through unregistered and illegal mobile applications.
When contacted, the DG of FIA said that he has asked for strict action against those involved in such illegal financial activities.
“Companies seek licenses from SECP for online loan payment apps,” the DG said and added that SECP has given non-banking financial companies (NBFCs) It is the registration and regulatory authority to issue licenses for lending through online apps.
Additionally, PA) collaborates with Apple and Google to remove illegal apps involved in microfinancing in Pakistan.
As the crackdown continues across Pakistan, DGFIA asked citizens to check the SECP website to verify whether the company app is licensed or not.
