PESHAWAR: A female student allegedly extorting money from people was arrested in the city on Monday, police said.

First-year-student Laila was arrested by police from the Mashokhel area in the outskirts of Peshawar.

Police officials said the alleged extortionist used a voice changer and pretended to be the member of a banned militant group to collect extortion money.

The extortionist threatened people with dire consequences who refused to give her the extortion money, said police officials.

Peshawar police have registered an FIR against the extortionist and have shifted her to central prison — after court’s permission — to carry out further investigation.

Increased incidents of extortion have been reported from Khyber Pakhtunkhwa, especially Peshawar in the recent past.

Reports from the KP capital indicate that apart from terrorism, extortion and kidnapping for ransom are Peshawar’s biggest law and order headaches.

Reportedly, the business community in Peshawar has been ‘advised’ by the police to arrange for their own security. Criminal gangs, militants and Afghan suspects are all believed to be involved in the extortion racket.

So rampant is the menace that many businesses have relocated to relatively safer areas of the country. Politicians, doctors and other professionals have also been targeted by extortionists.