Security News > 2022 > November > India's Home Ministry cracks down on predatory lending apps following suicides

India's Home Ministry has asked state governments to crack down on illegal lending apps it says have led to "Multiple suicides by citizens owing to harassment, blackmail, and harsh recovery methods."

A letter sent last week states: "Large numbers of complaints have been reported across India pertaining to illegal digital lending apps that provide short-term loans or micro credits at exorbitant interest rates with processing or hidden charges, especially to vulnerable and low-income people and use the borrower's confidential personal data like contacts, location, photos/videos for blackmail/harassment."

The letter does not mention China, but numerous reports in Indian outlets have linked the letter to past allegations of rip-offs run by China-controlled apps.

The crooks behind the apps use cryptocurrency to cover their tracks, too, allegedly.

The letter points out that the apps and their operators are unregulated by India's Reserve Bank - an issue authorities are aware of as they've recently called for regulation to control which financial services apps are permitted into the digital bazaars.

The government has also recently tabled legislation that will require providers of over-the-top communications apps to be put on similar regulatory footings to licensed carriers.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/11/01/india_lending_app_crackdown_ordered/