The Nigeria Data Protection Commission is currently looking into more than 400 instances of privacy breaches linked to online loan applications.
The rise in data privacy violations is largely attributed to the increasing number of digital lending platforms present in the market.
In its 2023 Annual Report released to NewsNow on Thursday, the commission highlighted the intrusive nature of loan apps discovered in its ongoing investigations.
An important goal for NDPC is to place a ban or limitations on mobile numbers used by lenders to breach customer privacy.
“They often breach Data Protection and Privacy guidelines by gaining access to contacts, images, messages, etc., of the data subjects,” stated the commission.
Despite Google’s introduction of a policy in April 2023 barring loan apps from accessing user photos and contacts, the breach continues to occur.
Recognizing the systemic issue of privacy breaches by loan apps, the commission is pursuing systemic solutions by collaborating with other regulators and third-party platforms utilized by the lenders.
Haruna Michael, a loan app user, revealed that one digital lender utilized his images, labelling him as a criminal on the run for failing to repay the loan within the designated time.
His contacts were contacted, and he was falsely accused of fraud.
Addressing over 400 privacy breaches involving questionable loan providers at a systemic level is a top priority.
The commission has formulated the Nigeria Data Protection Act-General Application and Implementation Directive, emphasizing the prevention of data breaches, importance of data ethics, and privacy as a central design principle, among others.
Under the abetment provision, third-party platforms enabling data privacy breaches will now be mandated to cease access for privacy violators.
“Organizations, specifically communication networks, must be ready to limit or prohibit phone numbers implicated in privacy violations,” as declared by the commission.
In addition, NDPC disclosed collaborations with regulators through the Joint Enforcement and Regulatory Taskforce to purify the digital lending sector.
The Federal Competition and Consumer Protection Commission now mandates lending firms to secure data protection clearance from NDPC prior to commencing operations.