The Cybercrime Investigation and Coordinating Center (CICC) has escalated its crackdown on predatory online lending applications (OLA), sealing a partnership with finance technology firm Copperstone Lending, Inc. to go after abusive digital lenders.
In a statement released Wednesday, CICC information officer Shekaina Lim said the alliance is meant to force a “safer lending landscape” amid the spread of OLAs that lure borrowers with “instant approval” promises while concealing exorbitant fees and resorting to 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 memorandum of agreement (MOA) was signed Tuesday at the CICC office in Quezon City, formalizing joint operations against erring platforms.
Under the deal, the CICC and Copperstone will mount aggressive public information campaigns to expose scammers masquerading as legitimate lenders. They will also push tougher policy measures aimed at suppressing and regulating OLA-related cybercrimes.
Both sides committed to providing technical and regulatory muscle to strengthen enforcement.
“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) logged 278 complaints involving OLAs, underscoring the scale of abuse. The cases involved 75 different apps, but only 23 were registered with the Securities and Exchange Commission (SEC), exposing the widespread operation of unregistered platforms.
Nearly half of the complaints cited online harassment, including public shaming of borrowers. Others involved outright loan scams where no funds were released, deceptive lending schemes that trap victims in endless debt cycles through hidden terms, and advance fee fraud requiring payment before any loan is disbursed. Some platforms were reported to be operating entirely outside the law.
C3 data showed that individuals aged 18 to 29 were the most targeted, followed by those aged 30 to 39 and 40 to 49.
“This indicates that digital natives are being specifically targeted in the apps and social spaces they frequent most,” Lim said.
The CICC urged the public to fight back by reporting online debt harassment and scams through the Inter-Agency Response Center (I-ARC) Hotline 1326.
In January, the SEC flagged the continued presence of multiple unregistered OLAs on the Google Play Store, including 22 apps operating without the required permits.
Their continued operation violates SEC Memorandum Circular No. 10, series of 2021, which has banned the launch, registration, and operation of new online lending platforms since November 2021.
PIXABAY PHOTO