Loan sharks using iCloud access to trap borrowers with high rates
NESDC warns Thais against giving non-banking entities access to their iCloud services, as they will be risking their personal data apart from paying exorbitant interest
The National Economic and Social Development Council (NESDC) has warned people against providing their iCloud account access to loan sharks because they stand a chance of losing all their data and being cheated.
The NESDC raised concerns after discovering that some non-banking loan operators have started using iCloud access as collateral to force debt repayment. iCloud, a cloud storage service provided by Apple Inc, stores and syncs users’ data across their Apple devices, including iPhones, iPads, Macs and Apple Watches. This makes it possible for loan sharks to gain control of the borrowers’ personal information and devices.
According to NESDC, some loan sharks require borrowers to log in to their iCloud accounts on the operators’ platform, effectively handing control to them. If the borrowers fail to make payments, then the operators can use the iCloud services to lock their iPhones or other devices, compromising personal information and even demanding a ransom to unlock the devices – even after the loans have been repaid.
In the worst case scenario, borrowers may end up losing access to their iCloud service without even getting a loan, the NESDC warned.
Additionally, it said, these loan sharks often give loans at exorbitant rates of up to 25%, which is far higher than the lawful maximum rate of 1.25%.
