Uzbekistan residents block loans to fight fraud
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Nearly 2.84 million people in Uzbekistan used a new service to prevent loans from being taken out in their names as of early October.
The Credit Information Analytical Center launched the “Credit Ban” service on June 6 to help citizens protect themselves from online lending fraud. Between July 1 and October 1, 267,449 more people signed up, a 10.4% increase. Most of the users were men, with 1,656,387 men and 1,185,088 women activating the service.
The Credit Ban allows individuals to temporarily or permanently block loans, microloans, and credit cards issued under their identities. Uzbekistan introduced the service after reporting that cybercrime cost the country UZS 1.9 trillion (currency of Uzbekistan) over five years, with 4% of those crimes involving fraudulent loans taken out in other people’s names. Financial institutions are now required to not charge interest on fraudulently obtained loans and to refund money already paid by victims with a court order.
