IN the current era of advanced technologies, safeguarding customer data privacy has emerged as a significant concern. While various online service providers pose a threat to data sanctity,recent months have witnessed a surge in online loan apps that aggressively target potential borrowers through promotional activities on popular social media platforms, offering convenient loans of up to Rs100,000 with `just a few clicks`.

However, to avail of these loans, individuals are required to provide their comprehensive personal information, including identification photos, qualifications and other requisites. By agreeing to the terms and policies set forth by these apps, users grant them access to their mobile devices, thereby placingtheir datain the hands ofthose who can exploit it to a massive extent.

Regrettably, a distressing incident occurred recently, highlighting the gravity of the situation. A man tragically took his life after being blackmailed by one of these loan sharks. Initially, the victim had borrowed a small amount due to challenging financial circumstances.

However, he found himself compelled to repay an exorbitant sum, more than three times the original loan amount, while simultaneously facing threats of data leakage. The app, having access to his mobile data, exploited this personal information to coerce and intimidate him.

Strict measures must be taken to curtail the activities of these fraudulent loangiving apps, many of which lack authorisation from the Securities and Exchange Commission of Pakistan (SECP) and fail to adhere to the privacy standards established for digital platforms.

These unscrupulous entities openly promote themselves and indiscriminately amass vast amounts of personal data. Consequently, it is crucial to differentiate and segregate the genuine actors within the industry from those engaging in illicit practices, ensuring the safety and security of individuals seeking legitimate loan services.

Syed Haroon Buner