Predatory Lending Apps Claim Victims Across Asia
Authorities and tech companies are in a game of cat and mouse with criminals who use apps to extract sensitive information and money from people looking to borrow.
Illustration: Luca Schenardi for Bloomberg Businessweek
The trouble often starts with social media ads. Get a $500 personal loan in 20 minutes, the ads on Facebook or Instagram say. No documentation needed, just download this app. When prospective borrowers do so, they hand over access to their phone’s contact lists and photo rolls. As soon as the next day, friends, family members and employers begin receiving emails, saying the victim identified them as guarantors and they’re on the hook for large sums that need to be paid immediately.
If that doesn’t work, the app’s operators can amp up the pressure by distributing embarrassing photographs. Some victims have also received funeral flower arrangements and coffins at their homes, a message that both signals the potential consequences of nonpayment and reminds targets that the criminals know where they live. Even paying off the loan isn’t always a solution—some borrowers have made good only to keep receiving threatening messages that claim they owe even more for fees and interest that have little connection to what they agreed to.