Global rise in predatory loan application scams

Regulatory authorities in various regions are warning against the rise of unauthorized lenders and predatory mobile loan applications.

In Peru, the Superintendence of Banking, Insurance and AFP (SBS) identified several entities and mobile apps, including Monedaya Pro, Mano Préstamo, and Yapi Cash, that operate without proper licensing. These entities often use terms like “financiera” or “cooperativa de ahorro y crédito” to mimic legitimate institutions. These apps frequently request access to personal data, such as contacts and photos, to facilitate high interest rates and potential harassment of users.

Similar patterns of digital lending fraud have been reported in Pakistan and Nigeria. In Pakistan, scammers use deceptive branding and excessive app permissions to blackmail borrowers by contacting their relatives. In Nigeria, over two hundred illegal platforms have been delisted for violating privacy and sending defamatory messages. In both nations, regulators are working to blacklist operators and advise citizens to verify lenders through official databases.