Pakistan’s Ministry of Information Technology and Telecommunications (MoITT) has taken definitive steps towards curbing the menace of illegal loan applications in the country.
Syed Amin Ul Haque, the Federal Minister for Information Technology and Telecommunications, reported that 43 apps have been blocked. The minister emphasized the need for public education to further guard against such deceptive operations. Citizens were encouraged to lodge complaints against illegal loan applications with the PTA, FIA Cybercrime, and local police for swift action.
In a proactive move, the minister of information technology has directed the FIA to take action against such operations without waiting for complaints.
The Rising Menace of Illegal Loan Apps and FIA’s Response
Many scam artists have launched fraudulent “easy loan” apps on platforms like Google Play and Apple Store. Despite appearing convenient, these apps have proven to be dangerous traps for many unsuspecting individuals, leading to devastating consequences like the recent suicide of a jobless man in Rawalpindi.
A survey by Karandaaz Pakistan, a non-profit organization, revealed that the number of Pakistanis using personal finance apps more than doubled to 19% in 2022, up from 8% in the previous two years.
The FIA has taken stern action against these illicit loaning companies. 74 cases have been registered for inquiries into complaints filed by victims and three FIRs against individuals and businesses. So far, seventeen suspects have been arrested, and thirty accounts have been blocked. Furthermore, the FIA’s cybercrime division has sealed five offices of companies involved in such illegal activities.
Mohsin Hassan Butt, the director general of the FIA, has instructed all field divisions of the cybercrime wing to continue taking severe action against businesses and individuals who offer loans via unregistered and illegal mobile apps.
The FIA is conducting a nationwide investigation into these matters, urging citizens to check with the SECP to verify if a company’s app is licensed. This is part of the broader effort to stamp out illegal microfinancing operations in Pakistan.
 takes strict measures against illegal loan Apps. Learn about the ongoing nationwide operations and their impact on financial security.){kind=link}