Scammers are taking advantage of the current economic turmoil to trick unsuspecting smartphone users into signing up for malicious loan apps that promise quick and easy cash.

As reported by BleepingComputer, these dangerous apps (commonly referred to as SpyLoan) have been downloaded from the Google Play Store over 12 million times this year.

Since the beginning of this year, cybersecurity firm ESET has identified a total of 18 SpyLoan apps that can steal sensitive data, including account and device information, installed apps, calendar events, local Wi-Fi network details, and metadata of images stored on the victim's smartphone. In total, we found 18 different SpyLoan apps that are capable of doing this.

While the promise of a loan being approved and payment being made via smartphone may be enticing, here is why you want to avoid these malicious SpyLoan apps at all costs.

SpyLoan apps first appeared in 2020, but have become very common on both Android and iOS over the last year.

In a new report, ESET notes that while these malicious apps may eventually make their way to the United States, at this time they are more prominent in Mexico, India, Thailand, Indonesia, Nigeria, the Philippines, Egypt, Vietnam, Singapore, Kenya, Colombia, Peru he explains. That does not mean that it is a threat that should be ignored.

Spy lone apps sold through social media and text messaging and available for download from malicious websites and third-party app stores all work the same way, even if they look slightly different. When potential victims install the apps, they are prompted to agree to terms of service and are granted broad permissions that are used to siphon off sensitive personal data.

From here, the spy loan app proceeds the user through a loan application process that also requires other sensitive data such as scanned copies of driver's licenses and selfies. These malicious loan apps actually pay users money, but it is more hassle than it is worth.

Even if a loan is not approved simply by installing these apps, the user is likely to be harassed and may even be threatened by the operator. These threats come in the form of a never-ending stream of messages designed to coerce borrowers into repaying their loans as quickly as possible.

Spy loan apps also offer much higher interest rates, and the repayment periods on the loans they offer can be shortened at a moment's notice. Let's say you thought it would take you a month to pay off your loan, only to find out that the entire balance will be paid off in just a few days. This has happened to many victims of spy loans, and several have reported that the loan executor threatened to kill their families.

If something seems too good to be true, it probably is, and with regard to SpyLoan and many other loan apps, this is absolutely the case.

Although it can be a real hassle, it is better to only apply for loans from established institutions such as well-known banks and other accredited lenders. However, before taking out a loan, you should research the financial institution you are looking to get a loan from and check its history, reputation, and whether or not it is registered with a national regulatory agency.

Anyone who decides to install a mobile loan app should carefully scrutinize all the permissions the app requires before putting it on their smartphone. Does the app really need access to your contacts, text messages, location, files, and photos? [At the same time, you also want to avoid installing apps from unknown sources, as they may contain malware or other viruses. SpyLoan apps like the 18 above appeared in the Play Store, but were quickly removed when search giant Google presented ESET's findings.

For further protection against loan scam apps, you should use one of the best Android antivirus apps on your smartphone. Google Play Protect can scan existing and newly downloaded apps for malware While it can, paid antivirus programs often offer other security features designed to protect your privacy and keep you safe online, such as VPNs and password managers.

Loan scams have existed since the dawn of time, but by distributing them as apps, operators can collect additional data on borrowers, which they can then leverage. If in doubt, go to the bank or call to make an appointment with the financial institution rather than taking a big risk with a questionable loan app.