The Federal Investigation Agency (FIA) has widened its operation against illegal online finance companies engaged in short-term online loaning practices, reported the 24NewsHD TV channel.
According to sources, the watchdog officials obtained details of more apps from the arrested persons.
Sources within the FIA revealed that the Cybercrime Circle of the authority initiated the crackdown to target individuals providing online loans to those facing dire economic conditions.
These unscrupulous lenders would then resort to blackmail and extortion, demanding large sums of money from the borrowers. This crackdown was initiated in the wake of a recent incident in Rawalpindi where an unemployed individual tragically died by suicide due to the harassment faced by such lenders.
FIA Director General Mohsin Hassan Butt already issued orders to take immediate action against illegal apps operating in the country. He stated that the crackdown initially began in Islamabad, Rawalpindi, and Lahore, with plans to expand it nationwide. He further announced that the operation would commence in Karachi in the following week, and preparations were already underway for its implementation.
The sources said that FIA has so far conducted 74 inquiries against illegal loan apps. Initiated legal proceedings by registering a case against three companies
As part of its efforts, it has arrested 17 suspects for allegedly blackmailing people through predatory online loan apps, and raids were conducted in the different areas of Lahore, Rawalpindi, and Islamabad.
The FIA has also blocked 30 accounts of online illegal loaning applications and sealed the offices of five such companies.
The FIA is meticulously verifying the registration status of financial companies with the Security Exchange Commission of Pakistan (SECP). Those companies operating without the necessary registration certificate will be deemed illegal.
Collaboration between the FIA and the Pakistan Telecommunication Authority (PTA) is also underway. The PTA is coordinating with Apple and Google to remove illegal apps involved in micro-financing within Pakistan.
The FIA is actively encouraging victims who have been harassed or coerced by loan sharks to come forward and report their cases, ensuring appropriate action is taken against the companies violating SECP regulations or operating without proper registration.
Later, Federal Minister for Information Technology and Telecommunication, Amin-ul-Haque also confirmed that the government has initiated a crackdown against illegal loan providers to combat the fraudsters.
In a statement issued here on Monday, he said that Chairman Pakistan Telecommunication Authority (PTA) Major General (r) Hafeezur Rehman has issued directives to take swift action on the illegal loan applications.
Amin-ul-Haq said that under the orders issued, 43 loan applications had already been blocked. The targeted companies, operating within the lending industry, were registered with the Securities and Exchange Commission, he added.
Highlighting the severity of the issue, he shed light on the involvement of mafia groups operating through social media platforms, particularly Facebook.
These unscrupulous entities have resorted to blackmailing innocent individuals, exploiting their financial vulnerabilities.
To raise awareness and safeguard the public, a comprehensive public awareness campaign has been launched.
The citizens are urged to report any suspicious loan applications or incidents involving the loan mafia groups to the PTA, the Federal Investigation Agency’s (FIA) Cybercrime wing, or their local police stations.
The collaborative efforts of various law enforcement agencies aimed to address the increasing cybercrime wave in the country.
To ensure effective coordination, the minister has direct contact with the Director-General of FIA, providing regular briefings on the progress of the operation.
Amin emphasized the need for proactive measures, rather than waiting for complaints to accumulate, against those involved in fraudulent loan schemes.
He stressed the importance of protecting the public from financial exploitation and curbing such illegal practices within the lending industry.
The minister condemned the tactics employed by loan mafia groups, including threats of violence, blackmail, and misuse of personal data.
He reaffirmed that these actions were in clear violation of the law and must be halted immediately.
The citizens are advised to exercise caution when engaging in online financial transactions and refrain from sharing personal information with unknown parties.
The ministry has noted the prevalence of online posts promoting money-making schemes, urging individuals not to respond to such advertisements and avoid sharing sensitive data or money.
The government’s crackdown aims to safeguard the interests of the public and maintain a secure online environment for all citizens.
As the operation progresses, the authorities remain vigilant in their efforts to bring the culprits to justice and protect the citizens from falling victim to fraudulent loan schemes.