43 predatory loan apps blocked as govt intensifies crackdown

The companies allegedly blackmailed innocent individuals, exploiting their financial vulnerabilities for personal gain

ISLAMABAD:

In a decisive move to tackle the rising issue of fraudulent loan applications, the Government of Pakistan has initiated a crackdown against illegal loan providers. 

Federal Minister for Information Technology and Telecommunication Amin-ul-Haque announced the government's proactive measures on Monday, highlighting the severity of the problem and the need for immediate action.

In a statement, Minister Amin-ul-Haque revealed that Chairman of the Pakistan Telecommunication Authority (PTA), Major General (r) Hafeezur Rehman, has issued immediate directives to swiftly address the issue of illegal loan applications. 

As a result, 43 loan applications have already been blocked, according to the minister. These companies, operating within the lending industry, were registered with the Securities and Exchange Commission, further emphasising the importance of curbing illegal practices within the sector.

Read more In crisis-hit Pakistan, rogue loan apps add to financial pain

Drawing attention to the gravity of the situation, Amin-ul-Haque shed light on the involvement of mafia groups, operating primarily through social media platforms like Facebook. These unscrupulous entities have resorted to blackmailing innocent individuals, exploiting their financial vulnerabilities for personal gain.

To raise awareness and protect the public from falling victim to these fraudulent schemes, a comprehensive public awareness campaign has been launched. Citizens are strongly urged to report any suspicious loan applications or incidents involving loan mafia groups to the PTA, the Federal Investigation Agency's (FIA) Cybercrime wing, or their local police stations. 

This collaborative effort among various law enforcement agencies aims to address the increasing wave of cybercrime in the country.

To ensure effective coordination, Minister Amin-ul-Haque said he maintains direct contact with the DG FIA, providing regular briefings on the progress of the operation.

Also read FIA arrests nine suspects in crackdown against predatory loan apps

Stressing the need for proactive measures, the minister emphasised the importance of protecting the public from financial exploitation. Rather than waiting for complaints to accumulate, action against those involved in fraudulent loan schemes is being taken swiftly, he said. 

The minister strongly condemned the tactics employed by loan mafia groups, which include threats of violence, blackmail, and the misuse of personal data. He reaffirmed that these actions are clear violations of the law and must be halted immediately.

The Ministry of Information Technology and Telecommunication says it has noticed the prevalence of online posts promoting money-making schemes and urges individuals not to respond to such advertisements or share sensitive data or money.