Predatory loan app scams rise in Pakistan and Nigeria

Predatory mobile loan applications are causing widespread financial and psychological distress across Pakistan and Nigeria. These scams often disguise themselves as legitimate microfinance or digital lending platforms to target individuals facing financial emergencies.

In Pakistan, scammers use deceptive tactics such as fake registration and copycat branding. Once an app is installed, it may request excessive permissions to access private photos and contact lists. This data is then used to harass or blackmail borrowers by contacting their relatives and coworkers with demands for inflated repayments. Regulators, including the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, and the Federal Investigation Agency, have taken steps to blacklist operators and remove fraudulent apps from stores.

Similarly, in Nigeria, over two hundred illegal loan platforms have been delisted for violating user privacy and sending defamatory messages to contacts. Authorities such as the Central Bank of Nigeria and the Federal Consumer Protection Commission advise citizens to verify lenders through official databases and to be wary of apps requesting access to private galleries or phonebooks.