Protection of Life and Property (Hifzh an-Nafs dan al-Mal) in the Digital Era: Challenges of Islamic Economics to the Rise of Illegal Online Loans

Abstract

The rapid development of digital technology has transformed various aspects of human life, including financial services. One of the most significant phenomena in the digital era is the emergence of online lending platforms that offer fast and easy access to credit. However, alongside the growth of legal financial technology services, illegal online lending practices have become increasingly widespread, causing serious social, economic and psychological problems. This study aims to analyze the phenomenon of illegal online lending from the perspective of Islamic economics, particularly through the maqāṣid al-sharī'ah principles of hifzh an-nafs (protection of life) and hifzh al-māl (protection of wealth). This research employs a qualitative approach using a library research method by examining relevant literature, academic journals, regulations, and Islamic legal sources. The findings reveal that illegal online lending practices pose significant threats to both individual well-being and financial security through excessive interest rates, abusive debt collection methods, misuse of personal data, and economic exploitation. These practices contradict the objectives of Islamic law, which seek to preserve human dignity, protect wealth, and ensure social justice. From the perspective of Islamic economics, efforts to address illegal online lending require stronger regulatory frameworks, public financial literacy, ethical digital financial services, and the development of Sharia-compliant financing alternatives. Therefore, the implementation of hifzh an-nafs and hifzh al-māl in the digital economy is essential for creating a fair, secure, and sustainable financial system that aligns with Islamic values and promotes societal welfare.