SAN FRANCISCO: Nearly 300 loan apps circulating on Google Play and the Apple App Store exhibit predatory behavior, including stealing excessive user data from mobile devices and harassing borrowers to make payments. A new report reveals that
According to cloud security firm Lookout, these loan apps take advantage of victims’ desire for quick cash, trapping borrowers into predatory loan agreements and granting them access to sensitive information such as contacts and SMS messages. I request you to
Some victims reported that the loans came with hidden fees, high interest rates, and repayment terms that were not as favorable as advertised.
Lookout also found evidence that data stolen from devices can also be used to force borrowers to repay. This is a common threat tactic to disclose a borrower’s debt to the network.
Lookout researchers found 251 Android apps that have been downloaded over 15 million times.
In the Apple App Store, researchers found 35 apps that ranked among the top 100 financial apps in regional stores.
Meanwhile, in August, after consulting with law enforcement, Google removed more than 2,000 controversial personal loan apps from the Indian Play Store between January and June.
Back in May, Google announced that Indian personal loan apps were required to complete additional proof of eligibility requirements.
Last month, Google ordered Kenyan loan apps to show proof of their license to operate in the country. Otherwise, you risk being removed from the Google Play Store.