Pakistan arrests 39 over AI-altered images used to blackmail loan app borrowers

Pakistani cybercrime authorities arrested 39 people, including one woman, in a raid on an alleged illegal call center in Lahore, officials said.

Investigators said staff ran loan apps and threatened borrowers with digitally altered explicit images if they failed to repay their debts.

Who was arrested in the Lahore loan app scam?

Police arrested 38 men and one woman at the premises of Talk Master Private Limited in Lahore's GCP Society.

The raid was carried out under the supervision of Additional Director Cyber Crime Atif Ameer after investigators obtained search warrants, according to authorities.

What did investigators seize during the raid?

Investigators seized 40 laptops and 41 mobile phones during the operation. The devices have been sealed and will undergo forensic examination as authorities investigate the alleged network.

Authorities are also examining financial records to determine how much money the operation generated. They are checking whether the alleged network had links beyond Pakistan.

How did the alleged loan app scam work?

Officials said the call center was operating several instant-loan applications, including Gurbat Fund, Jahez Fund, Cash Air, Credi Check and Credit Support. According to investigators, the applications sought access to users' photo galleries and contact lists when installed on their phones.

That information was allegedly used later to pressure borrowers who missed repayment deadlines. Investigators allege that call-center employees used artificial intelligence tools to manipulate borrowers' photographs and create explicit images.

The victims were then allegedly threatened with having the images shared with relatives and other contacts unless they made immediate payments.

What happens next in the investigation?

The investigation is continuing. Forensic analysis of the seized devices is expected to provide further evidence about the operation and those involved.