March 23, 2024

Local WhatsApp groups have been one of the silver linings of the pandemic, creating community ties and support networks. Yet loan sharks are increasingly using these groups to extort money from their victims, according to England’s Illegal Money Lending Team (IMLT), an organisation that prosecutes illegal lenders and supports victims.

Such lenders are also targeting their victims online – the IMLT’s 2020 victim statistics report shows that one in 10 victims met the loan shark via social media platforms such as WhatsApp, Snapchat and Facebook, or through dating websites. Criminals are also creating their own WhatsApp and Facebook groups that appear to be for local communities but are actually ways to maintain control over their victims, according to Tony Quigley, the head of the IMLT. “It looks like a local community group,” he said. “They will say ‘come and join the group’, ‘see what’s going on’. But it has a more sinister side to it.”

Loan sharks operate by offering victims short-term loans, then increasing their repayments arbitrarily and adding extra costs, often with threats of violence if money is not repaid.

“The illegal moneylender uses the group to apply pressure to the individual,” he said. “’I can’t give out loans this week, because Doris still owes me money’, that sort of thing. As well as ‘if you don’t pay me this week, I’ll put a note on the WhatsApp group about how you owe money’.”

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