Beware of pawning your iCloud access for loans, experts warn
Loan sharks could exploit personal data while also charging interest above legal limit
Leading IT companies have warned the public of various dangers from ‘iCloud pawning’, a practice employed by loan sharks using iCloud access to Apple devices as collateral to force debt repayment.
“iCloud pawning poses serious dangers as users are risking their personal data from exploitation, apart from paying interest above legal limit,” Panya Phunpermpholsiri, executive vice president of sales and marketing at Synnex Thailand Plc, said on Friday.
He explained that currently some non-banking loan operators were using iCloud access as collateral to force debt repayment from borrowers.
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, as well as lock the users out.
“This practice is illegal and violates Apple’s terms of user agreement, which prioritises the importance of personal data,” Panya warned, adding that such violations could void future services and warranty from the manufacturer.
He added that currently the only legal practice of using iCloud as loan collateral was being carried out by Samgsung Finance Plus, a legal lending company that employs a system called MDM (Mobile Device Management).
Dusit Sukhumvithaya, CEO of Jaymart Mobile, added that illegal iCloud lending was especially popular in provincial areas, at industrial estates where workers earn low wages but wish to use expensive Apple products, prompting them to apply for the loan.
He said borrowers could start using the devices after purchase, but the iCloud service would still be locked by loan providers until the repayment is complete.
“Loan sharks can access your personal data from anywhere. They would even know your current location from the GPS so they can track you down in case of default,” he said.
Dusit added that iCloud lending could potentially lead to personal information being held hostage for ransom by information leakers/sellers, although there has been no report of such incidents in Thailand.
