Rise of Fake Loan App Scams
Introduction
The increase in consumer demands has resulted in a sharp increase in digital financing in India. As a result, the reputation of the digital lending sector has been impacted, as bad actors increasingly deploy illicit lending platforms such as fraudulent loans and trading apps. As millions of Indians download fast loan applications to help them meet their financial ends, the fraudulent apps result in cyber crimes including financial fraud. Consumers need to be vigilant of dubious trading or loan applications as bad actors frequently use illegitimate apps to trick victims by advertising limited-period offers and applying pressure.
Recently the Indian Cyber Crime Coordination Centre (I4C) led handel CyberDost has issued a cybercrime alert against the ‘CashExpand-U’ finance assistant app, which has been now removed from the Google Play Store. The app was found to be associated with hostile foreign entities, and the app had made it easier to raise small loans. However, such loan apps are seldom credible and may compromise financial information.
Raising cases of Fraudulent Loan Apps
The finance minister had stated that the government is constantly engaged with the Reserve Bank of India and other regulators and stakeholders to control fraudulent loan apps. In FY23, there were 1,062 complaints against such apps, the Finance Minister shared during a Lok Sabha session. Google removed almost 134 fake apps from the Play Store in a single week in September 2023 after multiple complaints were registered against such apps. The Reserve Bank of India (RBI) had also issued regulatory guidelines on digital lending in April 2023 to bring transparency in the digital loan space.
CyberPeace Policy Wing Advisory for Users
- Be cautious of App Permissions
Fake lending apps collect data by fraudulently taking numerous app permissions from consumers and misusing them later. The users must effectively manage their app permissions to avoid denying any extra permissions such as access to contacts, location, and photos. This is because fraudulent digital lenders access users' personal data to extort additional money even after loan repayment.
- Practice Due Diligence
Consumers must exercise care & caution before applying for a loan from digital lending platforms. Before applying for a loan or downloading any such apps, consumers must conduct due diligence by verifying the app's name, rating, reviews, physical address, and contact information. Always double-verify the paperwork before signing any agreement or contract. Always apply for loans from RBI-approved and compliant banking and financial services providers.
- Download from Official Sources
To avoid downloading counterfeit apps, only download lending apps from official stores like Google Play Store or Apple App Store, and avoid downloading apps from web links sent via SMS, email, or social media, even if shared by your known persons.
- Be sceptical of too-good-to-be-true offerings
Be cautious of deals that seem too good to be true, like hassle-free easy loans as they can be fraudulent. If an offer seems too good to be true, it might be a red flag. Hence always conduct your own research to verify the lender and avoid making hasty decisions.
- Reporting Mechanism
In case of facing a scam by such fraudulent apps, victims can file a complaint with the ‘National Cyber Crime Reporting Portal’ or Cyber Crime Helpline ‘1930’, or they can also contact us at CyberPeace Helpline +919570000066 and helpline@cyberpeace.net to get assistance in reporting their cases.
Final Words
Illegitimate loan/trading apps have been raising concerns by defrauding innocent consumers who seek financial assistance. The Center has recently warned against the CashExpand-U app, which has been now removed from the Google Play Store. Users are advised to exercise due care and caution while downloading loan apps and applying for loans to prevent any potential scams. keep up to date with news from concerned authorities about common scams and fraudulent practices in the lending space and stay safe in the online world.
References:
- https://www.livemint.com/news/beware-govt-issues-cybercrime-alert-against-loan-app-cashexpand-u-finance-assistant-11720338996430.html
- https://timesofindia.indiatimes.com/technology/tech-news/government-has-issued-an-important-warning-for-this-loan-app/articleshow/111541577.cms
Related Blogs
Executive Summary:
The viral social media posts circulating several photos of Indian Army soldiers eating their lunch in the extremely hot weather near the border area in Barmer/ Jaisalmer, Rajasthan, have been detected as AI generated and proven to be false. The images contain various faults such as missing shadows, distorted hand positioning and misrepresentation of the Indian flag and soldiers body features. The various AI generated tools were also used to validate the same. Before sharing any pictures in social media, it is necessary to validate the originality to avoid misinformation.
Claims:
The photographs of Indian Army soldiers having their lunch in extreme high temperatures at the border area near to the district of Barmer/Jaisalmer, Rajasthan have been circulated through social media.
Fact Check:
Upon the study of the given images, it can be observed that the images have a lot of similar anomalies that are usually found in any AI generated image. The abnormalities are lack of accuracy in the body features of the soldiers, the national flag with the wrong combination of colors, the unusual size of spoon, and the absence of Army soldiers’ shadows.
Additionally it is noticed that the flag on Indian soldiers’ shoulder appears wrong and it is not the traditional tricolor pattern. Another anomaly, soldiers with three arms, strengtheness the idea of the AI generated image.
Furthermore, we used the HIVE AI image detection tool and it was found that each photo was generated using an Artificial Intelligence algorithm.
We also checked with another AI Image detection tool named Isitai, it was also found to be AI-generated.
After thorough analysis, it was found that the claim made in each of the viral posts is misleading and fake, the recent viral images of Indian Army soldiers eating food on the border in the extremely hot afternoon of Badmer were generated using the AI Image creation tool.
Conclusion:
In conclusion, the analysis of the viral photographs claiming to show Indian army soldiers having their lunch in scorching heat in Barmer, Rajasthan reveals many anomalies consistent with AI-generated images. The absence of shadows, distorted hand placement, irregular showing of the Indian flag, and the presence of an extra arm on a soldier, all point to the fact that the images are artificially created. Therefore, the claim that this image captures real-life events is debunked, emphasizing the importance of analyzing and fact-checking before sharing in the era of common widespread digital misinformation.
- Claim: The photo shows Indian army soldiers having their lunch in extreme heat near the border area in Barmer/Jaisalmer, Rajasthan.
- Claimed on: X (formerly known as Twitter), Instagram, Facebook
- Fact Check: Fake & Misleading
Introduction
The Ministry of Electronics and Information Technology recently released the IT Intermediary Guidelines 2023 Amendment for social media and online gaming. The notification is crucial when the Digital India Bill’s drafting is underway. There is no denying that this bill, part of a series of bills focused on amendments and adding new provisions, will significantly improve the dynamics of Cyberspace in India in terms of reporting, grievance redressal, accountability and protection of digital rights and duties.
What is the Amendment?
The amendment comes as a key feature of cyberspace as the bill introduces fact-checking, a crucial aspect of relating information on various platforms prevailing in cyberspace. Misformation and disinformation were seen rising significantly during the Covid-19 pandemic, and fact-checking was more important than ever. This has been taken into consideration by the policymakers and hence has been incorporated as part of the Intermediary guidelines. The key features of the guidelines are as follows –
- The phrase “online game,” which is now defined as “a game that is offered on the Internet and is accessible by a user through a computer resource or an intermediary,” has been added.
- A clause has been added that emphasises that if an online game poses a risk of harm to the user, intermediaries and complaint-handling systems must advise the user not to host, display, upload, modify, publish, transmit, store, update, or share any data related to that risky online game.
- A proviso to Rule 3(1)(f) has been added, which states that if an online gaming intermediary has provided users access to any legal online real money game, it must promptly notify its users of the change, within 24 hours.
- Sub-rules have been added to Rule 4 that focus on any legal online real money game and require large social media intermediaries to exercise further due diligence. In certain situations, online gaming intermediaries:
- Are required to display a demonstrable and obvious mark of verification of such online game by an online gaming self-regulatory organisation on such permitted online real money game
- Will not offer to finance themselves or allow financing to be provided by a third party.
- Verification of real money online gaming has been added to Rule 4-A.
- The Ministry may name as many self-regulatory organisations for online gaming as it deems necessary for confirming an online real-money game.
- Each online gaming self-regulatory body will prominently publish on its website/mobile application the procedure for filing complaints and the appropriate contact information.
- After reviewing an application, the self-regulatory authority may declare a real money online game to be a legal game if it is satisfied that:
- There is no wagering on the outcome of the game.
- Complies with the regulations governing the legal age at which a person can engage into a contract.
- The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 have a new rule 4-B (Applicability of certain obligations after an initial period) that states that the obligations of the rule under rules 3 and 4 will only apply to online games after a three-month period has passed.
- According to Rule 4-C (Obligations in Relation to Online Games Other Than Online Real Money Games), the Central Government may direct the intermediary to make necessary modifications without affecting the main idea if it deems it necessary in the interest of India’s sovereignty and integrity, the security of the State, or friendship with foreign States.
- Intermediaries, such as social media companies or internet service providers, will have to take action against such content identified by this unit or risk losing their “safe harbour” protections under Section 79 of the IT Act, which let intermediaries escape liability for what third parties post on their websites. This is problematic and unacceptable. Additionally, these notified revisions can circumvent the takedown order process described in Section 69A of the IT Act, 2000. They also violated the ruling in Shreya Singhal v. Union of India (2015), which established precise rules for content banning.
- The government cannot decide if any material is “fake” or “false” without a right of appeal or the ability for judicial monitoring since the power to do so could be abused to thwart examination or investigation by media groups. Government takedown orders have been issued for critical remarks or opinions posted on social media sites; most of the platforms have to abide by them, and just a few, like Twitter, have challenged them in court.
Conclusion
The new rules briefly cover the aspects of fact-checking, content takedown by Govt, and the relevance and scope of sections 69A and 79 of the Information Technology Act, 2000. Hence, it is pertinent that the intermediaries maintain compliance with rules to ensure that the regulations are sustainable and efficient for the future. Despite these rules, the responsibility of the netizens cannot be neglected, and hence active civic participation coupled with such efficient regulations will go a long way in safeguarding the Indian cyber ecosystem.
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Introduction
India's Competition Commission of India (CCI) on 18th November 2024 imposed a ₹213 crore penalty on Meta for abusing its dominant position in internet-based messaging through WhatsApp and online display advertising. The CCI order is passed against abuse of dominance by the Meta and relates to WhatsApp’s 2021 Privacy Policy. The CCI considers Meta a dominant player in internet-based messaging through WhatsApp and also in online display advertising. WhatsApp's 2021 privacy policy update undermined users' ability to opt out of getting their data shared with the group's social media platform Facebook. The CCI directed WhatsApp not to share user data collected on its platform with other Meta companies or products for advertising purposes for five years.
CCI Contentions
The regulator contended that for purposes other than advertising, WhatsApp's policy should include a detailed explanation of the user data shared with other Meta group companies or products specifying the purpose. The regulator also stated that sharing user data collected on WhatsApp with other Meta companies or products for purposes other than providing WhatsApp services should not be a condition for users to access WhatsApp services in India. CCI order is significant as it upholds user consent as a key principle in the functioning of social media giants, similar to the measures taken by some other markets.
Meta’s Stance
WhatsApp parent company Meta has expressed its disagreement with the Competition Commission of India's(CCI) decision to impose a Rs 213 crore penalty on them over users' privacy concerns. Meta clarified that the 2021 update did not change the privacy of people's personal messages and was offered as a choice for users at the time. It also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update.
Meta clarified that the update was about introducing optional business features on WhatsApp and providing further transparency about how they collect data. The company stated that WhatsApp has been incredibly valuable to people and businesses, enabling organization's and government institutions to deliver citizen services through COVID and beyond and supporting small businesses, all of which further the Indian economy. Meta plans to find a path forward that allows them to continue providing the experiences that "people and businesses have come to expect" from them. The CCI issued cease-and-desist directions and directed Meta and WhatsApp to implement certain behavioral remedies within a defined timeline.
The competition watchdog noted that WhatsApp's 2021 policy update made it mandatory for users to accept the new terms, including data sharing with Meta, and removed the earlier option to opt-out, categorized as an "unfair condition" under the Competition Act. It was further noted that WhatsApp’s sharing of users’ business transaction information with Meta gave the group entities an unfair advantage over competing platforms.
CyberPeace Outlook
The 2021 policy update by WhatsApp mandated data sharing with Meta's other companies group, removing the opt-out option and compelling users to accept the terms to continue using the platform. This policy undermined user autonomy and was deemed as an abuse of Meta's dominant market position, violating Section 4(2)(a)(i) of the Competition Act, as noted by CCI.
The CCI’s ruling requires WhatsApp to offer all users in India, including those who had accepted the 2021 update, the ability to manage their data-sharing preferences through a clear and prominent opt-out option within the app. This decision underscores the importance of user choice, informed consent, and transparency in digital data policies.
By addressing the coercive nature of the policy, the CCI ruling establishes a significant legal precedent for safeguarding user privacy and promoting fair competition. It highlights the growing acknowledgement of privacy as a fundamental right and reinforces the accountability of tech giants to respect user autonomy and market fairness. The directive mandates that data sharing within the Meta ecosystem must be based on user consent, with the option to decline such sharing without losing access to essential services.
References
