Cloud security company Lookout has identified nearly 300 loan applications available on Apple’s App Store and Google Play that engage in predatory practices, including the excessive collection of user data and harassment for repayment.
These apps, discovered in regions such as Africa, Southeast Asia, India, Colombia, and Mexico, claim to provide quick, fully-digital loan approvals with attractive terms. However, Lookout indicates that they take advantage of individuals seeking fast cash by trapping them in exploitative loan agreements that require access to sensitive information on their devices, including contacts, call history, and text messages.
Victims have reported hidden fees, exorbitant interest rates, and repayment terms that are far less favorable than what was advertised in the app stores. Lookout Threat Lab has also found that the data captured from these devices is often used as leverage to coerce borrowers into repayment, threatening to disclose their debts or personal information to their contacts.
In total, Lookout researchers discovered 251 Android apps on the Google Play Store, which have accumulated over 15 million downloads. Additionally, they identified 35 apps on the Apple App Store that ranked among the top 100 finance apps in their respective regions. Following Lookout’s communication with Apple and Google, all of these apps have been removed.
Ruohan Xiong, a senior security intelligence researcher at Lookout, stated, “As these predatory loan apps have shown, app permissions can easily be misused if users are not vigilant. While there are likely many independent operators involved, all of these loan apps share a similar business model—tricking victims into unfair loan terms and then extorting payments.”