NCCIA Lahore Zone officials say the suspects allegedly used AI-generated fake images to blackmail borrowers and extort money.

LAHORE: The National Cyber Crime Investigation Agency (NCCIA) Lahore Zone has arrested 39 people, including a woman, over their alleged involvement in blackmailing and harassing citizens through online loan applications.

The action was carried out on the directions of Atif Ameer, Additional Director NCCIA Lahore Zone, with three officers shown in the lower section of the provided image involved in the operation.

According to the information provided by officials, the suspects allegedly operated through different online loan applications and provided loans to citizens. When borrowers delayed repayment, the suspects allegedly resorted to blackmail, harassment and pressure tactics to recover money.

Officials said the suspects allegedly obtained photographs of borrowers and used artificial intelligence (AI) technology to create fake and objectionable images. They then allegedly threatened to send the manipulated images to the victims’ family members and other relatives in an attempt to pressure them into making payments.

During the operation, NCCIA officials reportedly recovered data related to various loan applications and other material from a call center. Forty laptops and 41 mobile phones were also seized.

The confiscated digital devices have been sent for forensic examination, according to the information provided. Investigators are also examining the financial activities of the suspects and their alleged links abroad.

Meanwhile, raids are continuing at different locations to arrest other alleged associates connected with the call center.

The case highlights concerns surrounding the misuse of online lending platforms, particularly where personal information and photographs can be exploited for intimidation and digital harassment. Authorities said the scope of the operation would be expanded to protect citizens from fraud, blackmail and digital harassment linked to online loan applications.

The allegations against the arrested suspects will be subject to further investigation and legal proceedings.