The Senate Standing Committee on Information Technology and Telecommunications, chaired by Senator Palwasha Khan, held a session where officials from the National Cyber Crimes Investigation Agency (NCCIA) revealed alarming details about the scale of online fraud in Pakistan, including that conducted via loan apps.
Officials disclosed that online loan apps were charging up to 1,800% interest rates, accessing users’ galleries and contacts, and blackmailing borrowers. “People borrowed as little as Rs. 5,000 for food, but ended up trapped in a cycle of debt,” one NCCIA official told the committee.
The Securities and Exchange Commission of Pakistan (SECP), which licensed these companies in 2020 without imposing conditions, has since revised regulations, capping interest at 100% and barring apps from accessing personal data. Over 90% of fraudulent loan apps have now been shut down.
These loan scams are not just prevalent in mobile apps, but also widespread on social media, promising users “interest-free” loans. Earlier this year, the SECP warned against ads on social platforms such as Facebook, falsely offering quick, interest-free loans with minimal requirements. These ads are using the names of reputable organizations to lure unsuspecting users into these promotions to falsely project legitimacy.
The users are then prompted to pay upfront charges under the guise of processing, registration, insurance, or account verification fees, or to share sensitive personal information. Once the payment or information is obtained, the scammers disappear without providing any loan.
Jazz Cash still charges 260% per annum.
Why they are so late every time?
The funny thing is that senate should be creating laws that would ban them.
And yet here they are are bickering instead of actually solving this
Where are the regulators. They let every one fleece citizens. SECP, Competition Commission of Pakistan and ever sleeping SBP.
Rules are for fools, wise men make them, wise men break them…. How sweet…🤲🙏
So why is senate not creating setting legislation that bans them ?
Funny how senate talks alot but never creates resolution ? Shameful freeloaders
﴿الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا ۗ وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا ۚ فَمَن جَاءَهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ ۖ وَمَنْ عَادَ فَأُولَٰئِكَ أَصْحَابُ النَّارِ ۖ هُمْ فِيهَا خَالِدُونَ﴾
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جو لوگ سود کھاتے ہیں وہ (قبروں سے) اس طرح (حواس باختہ) اٹھیں گے جیسے کسی کو جن نے لپٹ کر دیوانہ بنا دیا ہو یہ اس لئے کہ وہ کہتے ہیں کہ سودا بیچنا بھی تو (نفع کے لحاظ سے) ویسا ہی ہے جیسے سود (لینا) حالانکہ سودے کو خدا نے حلال کیا ہے اور سود کو حرام۔ تو جس شخص کے پاس خدا کی نصیحت پہنچی اور وہ (سود لینے سے) باز آگیا تو جو پہلے ہوچکا وہ اس کا۔ اور (قیامت میں) اس کا معاملہ خدا کے سپرد اور جو پھر لینے لگا تو ایسے لوگ دوزخی ہیں کہ ہمیشہ دوزخ میں (جلتے) رہیں گے
First of all the authorities from this current and the previous all governments are held responsible for this state of disobedience and rebellion from Allah’s commandments because of allowing Interest in the economy.
Itna late Aya senate ko. Jin logo nay pay nhe kia wo default list may Hain aur SBP ka koi procedure nhe ha clearance ka. Matlab ab wo na pay kr sktay na clear ho sktay.
NSCA, NADRA, NAB, PTA
ہر شاخ پہ دلا بیٹھا ہے
انجام ہیرا منڈی کیا ہوگا
Baqi departments k name ni likhay tu it doesn’t mean k wo awam ko lootnay me ni lgay howey.
Such scams are not possible without connivance of the concerned departments. It has been a history in Pakistan that all types of fraud are committed openly and the public is looted without any fear. The agencies responsible to hinder such activities remain in deep slumber until the fraudesters flee away!
Sirf loan apps hi ni Jazzcash aor easypaisa apps bi behti ganga ko jaha koi law na full dono hatho se loot rahi hen.
Q k laws tu sarey ghareeb ko lootnay k liay bnaye gaye hen is mulk naa k saftey k liay.
Government failure policies led poor people in trouble…loan collector should bound to call from official hotline