Google has removed 17 apps from the Play Store that were targeting Indian users with predatory loans and data harvesting. These apps, dubbed “SpyLoan” apps by researchers, were designed to exploit the trust that users place in legitimate loan providers.
According to a report by ESET Research these malicious apps tricked users into granting them extensive permissions to access their personal data. Once installed, the apps will steal a wide range of information, including contact lists, SMS messages, photos, and browsing history. This data was then used to blackmail and harass victims into paying back loans with exorbitant interest rates.
Reportedly, these apps were operational in countries like India, Pakistan, Thailand, Vietnam, Mexico, Indonesia, Colombia, Egypt, Kenya, Peru, the Philippines, Singapore, and Nigeria. Researchers believe that over 12 million people downloaded these apps before they were removed from the Play Store.
How these apps worked
Researchers have discovered that SpyLoan apps tricked users into downloading them by disguising themselves as legitimate loan providers. Once installed, these apps gained access to users’ personal information through broad permissions granted unknowingly. This information was then used to blackmail victims into paying exorbitant interest rates on drastically shortened repayment periods, making repayment nearly impossible. Essentially, these predatory apps exploit the desperation of people needing quick financial assistance.
Victims of these loan applications have further reported that the actual annual cost of the loans (TAC) is much higher than advertised, and the repayment period is significantly shorter than what legitimate banks offer.
Furthermore, several borrowers were pressured into paying off their loans within the next five days, which is an unrealistic time frame for many people. Additionally, the report revealed that the true annual cost of these loans ranged from a staggering 160 per cent to 340 per cent.
Reports indicate that the impact of these SpyLoan apps has been devastating for victims, with some tragically resorting to taking their own lives due to the immense pressure to repay their loans.
The deceptive nature of these apps became evident when users were forced to provide extensive personal information under the threat of loan denial. This blatant manipulation led to over 12 million downloads worldwide before Google finally removed them from the Play Store.
Google removed the apps from the Play Store
Google has stated that it is committed to protecting users from predatory apps and has removed over 200 SpyLoan apps from the Play Store in the past year. However, the company acknowledges that it is still too easy for these apps to be downloaded and installed. So the company urges users to be vigilant and take precaution and safety measures to protect themselves.
How to protect yourselves
To protect yourself from falling victim to such malicious apps, here are some important things to follow:
