LAHORE: A crackdown by the National Cyber Crime Investigation Agency (NCCIA) uncovered a suspected illegal loan recovery operation in Lahore that reportedly used AI-generated obscene images, stolen personal information and threats against borrowers and their families to pressure them into repaying loans.
The NCCIA arrested 39 people including 38 men and one woman during the raid on a suspected operation working under the name Talk Master Pvt Ltd in GCP Society, Lahore. The raid was conducted under the supervision of Additional Director Atif Ameer, according to the case details report.
Investigators said the network used illegal loan applications to provide money to borrowers before gaining access to sensitive information stored on their mobile phones.
Once the apps gained access to users' devices, operators collected contact lists and photographs from their phones. Investigators said the information was later used to pressure borrowers when they missed payments and were asked to pay additional amounts.
Authorities allege that operators used artificial intelligence to alter borrowers' photographs and create fake obscene images. The manipulated images were then they used as a blackmail tool.
Victims were reportedly threatened with having the fabricated images sent to their relatives, friends and other contacts unless they paid the demanded amounts. The case highlights a growing digital threat in which personal information collected through mobile applications can be turned into a weapon for intimidation, financial pressure and blackmail.
During the Lahore operation, NCCIA officials recovered 40 laptops and 41 mobile phones. The seized devices and other digital evidence have been sent for forensic examination. A criminal case has also been registered, while investigators are searching for other people who may be linked to the network.
Authorities are examining the seized material to determine how the loan applications operated and what roles the suspects played in the recovery operation.
NCCIA Director General Syed Ali Nasir Rizvi warned that people involved in blackmailing citizens would face strict action. He said protecting the public's digital and financial security remains a priority for the agency.
The Lahore raid comes as authorities face growing concerns over illegal digital lending operations and aggressive loan recovery practices in Pakistan.
In September 2025, NCCIA reportedly arrested six people during a raid on a call center in Gulshan-e-Maymar, Karachi. Authorities said that unregistered loan applications were being used to collect personal information and manipulate victims' photographs into obscene images for blackmail.
Both Pakistani and foreign citizens were reportedly among the targets. In September 2026, authorities also raided a suspected illegal call center in Satellite Town, Rawalpindi, arresting 61 people.
Investigators recovered 71 mobile phones and 155 laptops and reported that foreign nationals were threatened and money was extracted from them under the guise of loan recovery.
Pakistani authorities have previously taken action against unlicensed digital lending applications. The Pakistan Telecommunication Authority (PTA) has blocked numerous illegal loan apps, including 43 applications that were blocked after a reported suicide was linked to excessive interest rates.
