NITDA warns against unverified instant loan platforms

The National Information Technology Development Agency (NITDA) has raised concerns about the general public needing to be wary of unverified instant lending apps and platforms, saying some of them are fraudulent.

“Users should exercise caution, weigh the risks and dangers of such offers, especially when they pose a serious risk to their lives,” NITDA spokesperson Hadiza Umar said in a statement on Tuesday. in Abuja.

Ms Umar said it was important for people to be aware of the fraudulent activities of some instant loan apps as October is marked globally as cybersecurity awareness month.

She observed that people in need of money might be tempted by the promise of hassle-free microfinance software that secures loans in minutes and requires no paperwork or signature verification.

“Users should be warned that many instant loan apps use harsh and unethical methods to recover money,” she said.

She added that when an individual downloads such apps, in most cases, they must authorize the app to access their contact numbers, photos and location, among other requirements.

“They deploy measures such as constant harassment and threats, sending notifications, warnings to the borrower’s contacts and even the threat of serious legal action,” Umar said.

She said that in order for people to stay safe from such platforms, they should avoid downloading apps based on unregistered loans.

“If you must download, do a background check on the lending company running the app, and read and understand their terms and conditions before agreeing.

“Be careful, as your contact details, photos and location may be copied by these lenders.

“Make sure that these money lenders are compliant with the Nigerian Data Protection Regulations (NDPR),” Ms Umar advised.


Harry L. Blanchard