Loan apps accused of stealing private data to blackmail users

• Loan apps in Pakistan are facing crackdowns and app removals from the Google Play Store.
• Certain SECP-registered loan apps demand excessive permissions, even for simple functions.
• The SECP has warned loan apps that they must comply with the new regulations or face closure.

In Pakistan, loan apps face crackdowns and app removals from the Google Play Store due to alleged illegal activities by the Federal Investigation Agency (FIA).

Google has implemented stricter policies against loan apps in collaboration with the Securities and Exchange Commission of Pakistan (SECP).

If you have been following these apps closely, you might have noticed that their data collection practices have raised suspicions. Here are the details:

Too Many Permissions

Even popular loan apps, including those registered with the SECP, require an alarming number of permissions, even for basic tasks. For instance, the Barwaqt app demands access to your phone gallery, contacts, app activity, and personal information.

The provided screenshot is from Barwaqt’s Google Play Store page.

Loan apps accused of stealing private data to blackmail users

JazzCash and Easypaisa, unlike Barwaqt, do not display their required permissions on the app store. However, you can view the complete list after downloading the apps on your phone.

Loan apps accused of stealing private data to blackmail users

Indeed, these apps demand extensive data access, and while users can deny permissions on newer Android versions, the initial data collection raises concerns. Notably, these apps collectively have over 70 million downloads on Android.

Similarly, other SECP-registered apps like EasyLoan and Muawin follow the same data collection practices, with over a million downloads combined.

Loan apps accused of stealing private data to blackmail users

Not Surprising

It is not surprising to those familiar with the story that these apps have faced previous issues related to data collection. Whether the collected data is used for their benefit or sold to third parties remains a matter of speculation.

Significant strict restrictions are imposed on Loan Apps Debt recovery methods. Those not following will be shut down.

Along with that apps like Barwaqt that are registered with SECP have been given warning notice to change all predatory practices within a week or face closure. pic.twitter.com/FK9ZBQD6S3

— Salman Sufi (Get New Covid Booster Today) (@SalmanSufi7) July 22, 2023

Fortunately, the SECP has taken action and issued a warning to its registered apps, including Barwaqt, to rectify their predatory practices or risk closure within a week.

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