SECP’s crackdown on illegal loan apps continues

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has helped get an illegal loan app ‘DD Credit’ blocked by the PTA, said a press release on Tuesday.

The statement said that the SECP “vigilantly monitors app stores, websites and social media for illegal personal loan apps to protect people from falling into debt traps.”

Per the SECP: ‘DD Credit’, an illegal app, found to be reaching out to people through advertisements on Facebook was reported to the PTA and the FIA and was consequently blocked by the PTA.

“The SECP, through its efficient inhouse surveillance mechanism, has identified 141 illegal apps and reported them to Google, Apple and the PTA for prompt blocking along with referring these apps to the FIA for action in accordance with the Prevention of Electronic Crimes Act of 2016. This coordinated approach has proved instrumental in curbing the proliferation of illegal apps,” said the statement.

According to the SECP, these apps pose significant risks to user safety including the misuse of personal information/sensitive financial data, fraud, blackmail and harassment, etc. Through its press release, the SECP “warns people not to download illegal apps from any website or through the links shared via email or social media.”

The SECP has also published an updated list of illegal apps on its website for public information. It has also reported these apps to respective app stores, PTA and FIA.

In its statement, the SECP advises people to exclusively download SECP-approved personal loan apps that are only available on official app stores of Google and Apple. The list of SECP-approved personal loan apps is also available on the SECP website for the convenience of people.