Recent reports suggest that if a customer delays payment for MobiKwik Zip by around 20 days, MobiKwik may allegedly hack the user’s phone, accessing contacts and sending messages or making calls to their relatives through a fraudulent-looking website. Shockingly, this includes contacts not even saved in the user's phone. This practice violates the IT Act, 2000 under Sections 66 (hacking) and 66E (violation of privacy). These actions are illegal, bypass RBI guidelines , and highlight the absence of regulation for such companies.
Despite clear RBI guidelines , some fintech companies seem to operate outside the regulatory framework, disregarding rules meant to protect customer privacy. Such actions not only harm consumers but also raise questions about the enforcement of these laws in India's burgeoning fintech sector.
Legal Implications
Under the Information Technology Act, 2000, specifically Section 66 and Section 66E, tampering with someone’s phone, accessing contacts without permission, and violating their privacy is a serious offense. If proven, these companies could face legal actions including fines or imprisonment.
Steps Forward
For affected individuals, it is critical to report such instances to cybercrime authorities. Moreover, regulators such as RBI need to strengthen oversight over fintech companies like MobiKwik to ensure that customer privacy is safeguarded.
Conclusion
This incident underlines the importance of stricter regulation and transparency in debt collection practices, especially in the digital era. Legal frameworks like the IT Act should be enforced rigorously to protect individuals from such unauthorized actions.
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