Following mounting criticism that unscrupulous lenders were stealing the contents of borrowers’ smartphones for harassment and extortion, Google said it would remove “sensitive” data such as debtors’ contacts, photos and location information. We are cracking down on predatory loan apps by blocking access to.
On Wednesday, the company updated its policies for financial services apps listed on the Google Play store at the end of May, stating that “apps intended to offer or facilitate personal loans cannot access users’ contacts and photos. I will.”
Details provided to app developers for Google’s Android mobile system also show for the first time restricting lending apps from requesting access to a user’s exact location, phone number and video. , personal loans, payday loans, and peer-to-peer loans, but not mortgages, auto loans, or credit cards.
Research shows that hundreds of apps available through Google Play require prospective customers to grant access to the most personal information on their device in order to continue with the application. Consent is often given because these details are necessary to conduct a credit check or risk assessment.
However, some victims in regions such as India and Mexico reported that lenders used incriminating or defaced photos to blackmail them, or harassed friends and family via their phone contact books. doing.
These apps exploit vulnerable individuals’ desperation for cash at a time when inflation, energy prices, and other rising costs of living are straining the finances of many households.
A November study by cybersecurity firm Lookout found more than 250 apps available on Google Play in Africa, Southeast Asia, India, Colombia, and Mexico with more than 15 million combined downloads, indicating that “mobile is driving excessive users. It was accused of stealing data.” Harassing borrowers for devices and repayment. We also found 35 similar apps in Apple’s App Store. Apple and Google removed all apps following Lookout’s report.
Google declined to comment further on the policy change. The app has already blocked the loan he must repay in full within 60 days.
Google and Apple are already blocking apps that charge more than 36% a year in the US, and various others in India, Indonesia and Nigeria as countries introduce new rules designed to deal with the proliferation of digital lenders. rules are introduced. Kenya, Pakistan.
Android has a 70% share of the smartphone market and is estimated to have 3 billion active users worldwide, including China where the Google Play store is not available.
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