The Indian government has raised concerns about a loan app named ‘CashExpand-U Finance Assistant’, issuing a warning through its cybercrime department, CyberDost. The department, on its official X handle, declared that the app has been removed from the Google Play Store due to its alleged association with hostile foreign entities.
In their X post, CyberDost stated, “Beware! The CashExpand-U Finance Assistant – Loan app is learnt to be associated with hostile foreign entities. #LoanApps #Cybercrime #DigitalSafety #Lending #I4C #MHA #Cyberdost #Cybersecurity #CyberSafeIndia.” They urged users to immediately remove the app from their devices to prevent potential data breaches.
The ease of accessing small loans through lending apps has grown, but concerns persist regarding their legitimacy and the potential compromise of financial information. The Finance Ministry reported 1,062 complaints against such apps in FY23 to the Lok Sabha. In September 2023, Google removed nearly 134 fake apps from the Play Store following multiple complaints.
The Reserve Bank of India (RBI) issued regulatory guidelines for digital lending in April, aiming to promote transparency within the digital loan space. The central bank, in its December 2023 monetary policy meeting, expressed concerns about potential harm to customers’ interests and announced the development of a regulatory framework for web aggregation of loan products.
To combat cyber fraud and unauthorized lending apps, the RBI is creating a Digital India Trust Agency (DIGITA). This agency will verify digital lending apps and maintain a public registry of approved ones, effectively making unverified apps legally unauthorized. DIGITA will play a crucial role in regulating digital lending apps, ensuring transparency and accountability in the lending process.
