By Raymond Carl Dela Cruz
MANILA – The Cybercrime Investigation and Coordinating Center (CICC) has partnered with finance technology firm Copperstone Lending, Inc. to crack down on predatory online lending applications (OLA).
In a news release on Wednesday, CICC information officer Shekaina Lim said the partnership aims to establish a “safer lending landscape” as many OLAs offer “instant approval” loans that hide exorbitant fees and psychological abuse.
“The collaboration seeks to move Filipinos toward a ‘courageous employment’ of online financial services by stripping away the fear and negative impressions created by illegal operators,” Lim said.
The partnership was formalized through a memorandum of agreement (MOA) signed at the CICC office in Quezon City on Tuesday.
Under the MOA, the CICC and Copperstone will hold public information drives to help the public distinguish between legitimate lenders and scammers.
They will also collaborate on policy composition, particularly on new measures to suppress and regulate OLA-related cybercrimes.
In addition, both agencies will provide mutual aid through technical and regulatory support.
“By promoting transparency and rigorous enforcement, the CICC and Copperstone aim to ensure that financial technology remains a tool for empowerment, not a weapon for extortion,” Lim said.
From Jan. 1 to Feb. 10, the CICC’s Cybercrime Complaint Center (C3) received 278 reports involving OLAs.
These involved 75 different OLAs, only 23 of which were found to be registered with the Securities and Exchange Commission (SEC). About half of the complaints had online harassment incidents, including shaming the victims.
Also reported were loan scams or direct fraud incidents, where no funds were disbursed to the victim, deceptive lending practices, where hidden terms trap borrowers in infinite debt cycles, and advanced fee fraud, or those that require payment before a loan is released.
There were also reported platforms that were operating entirely outside the law.
The C3 data also showed that the 18 to 29 age group was the most vulnerable to OLAs, followed by the 30 to 39 age group and the 40 to 49 age group.
“This indicates that digital natives are being specifically targeted in the apps and social spaces they frequent most,” Lim said.
The public is advised to reach out to the CICC to report online debt harassment or scams through the Inter-Agency Response Center (I-ARC) Hotline 1326.
In January, the SEC reported the continued operations of multiple unregistered OLAs on the Google Play Store, particularly 22 apps that were operating without the necessary permits.
Their continued operation violates SEC Memorandum Circular 10, series of 2021, which explicitly prohibits the launch, registration, and operation of new online lending platforms since it took effect in November 2021. (PNA)
