PAKISTAN Telecommunication Authority (PTA) has swung into action against digital lending apps operating without a license after a Rawalpindi man killed himself due to threats and blackmailing from the loan app, for failing to pay back debt which compounded to a whooping Rs. 800,000 after interest. According to its statement, 43 such applications have already been blocked and victims have been asked to lodge their complaints against fraudulent apps with FIA, PTA and local police.
The social media was abuzz with stories of fraud by such apps and sufferings of their victims but unfortunately we waited for a tragedy to take action against them. FIA has a cyber wing while it is the responsibility of the State Bank of Pakistan, Securities and Exchange Commission of Pakistan (SECP) and PTA to monitor the situation on their own and initiate prompt action to safeguard interests of the innocent citizens. These apps also carry out extensive advertising on social media and digital platforms, allowing them to lure more unsuspecting customers. The tactics used by these apps to blackmail their clients were highlighted in the social media but the institutions concerned failed to take required action. Now again it would not be enough to block such apps as new apps would emerge and, therefore, comprehensive investigations should be carried out and culprits involved proceeded against under the relevant laws. A strong action is warranted also because the negative activities of these apps amount to shattering confidence and trust of the people in digital services and transactions. FIA’s cyber wing claims to be overburdened because of a huge backlog of complaints and this situation calls for immediate attention of the authorities concerned to take prompt measures to strengthen the wing as cyber crime is increasing in the digital era. It is also the responsibility of the departments concerned to launch a timely awareness campaign to sensitize people against possibility of fraud as is the practice by different banks who warn their customers about such fraudulent practices.
