What should I do about unknown apps using my contacts?

Why apps access your contacts

1. Displaying contact names: When you receive a message, email, or call — whether via:
   1. Mail
   2. Messages (iMessage/SMS)
   3. WhatsApp
   4. Telegram
   5. Or any other communication app
   6. — your iPhone (or the app itself) may access the Contacts database to:
   7. Match the incoming phone number or email address with a saved name or photo
   8. Show you "John Smith" instead of just "+1 (555) 123-4567"
   9. So even if you're only receiving a message, the app might access Contacts to identify the sender.
2. Sending messages or emails: When you compose a message or email, iOS or the app:
   1. May access your contacts to auto-complete names and addresses
   2. Show recent contacts
   3. Let you pick from your contact list

This access is also recorded in the App Privacy Report.

📌 Important Notes:

• Access is logged only if you've granted permission to that app under Settings > Privacy & Security > Contacts.
• Access can be occasional or continuous, depending on how the app functions (e.g., WhatsApp might access contacts more often to sync who’s on the app).
• Some accesses are done by iOS system services on behalf of the app — these may or may not be logged depending on context.

I am having the same issue. I also noticed Shortcuts Action appears in my App Privacy report and also did not give permission. I am also experiencing a serious hacking issue so I am concerned why this showed up without me granting permission. How did this Short cut get enabled when I didn’t create it?

I had same issue....turned out that I had accidentaly added facetime to one of my contacts. I had to re-install the shortcuts app and facetime (I don't use either so this was very weird).....I had to delete my contact in the facetime app and then check that this was gone in the shortcuts app. Backed up phone allowing shortcuts to back up to icloud.....then deleted shortcuts and facetime apps. This removed the connection to Shortcutsaction. As posted by the "masters" this nasty thing is attached to contacts....luckily I found mine....good luck!!

Control access to your contacts on iPhone - Apple Support