Bangladesh Bank has warned customers against fraudulent mobile apps offering online loans, saying they may steal personal information, contacts, photos, videos and messages stored on users’ phones and use them for extortion and blackmail.
In a recent notice, the central bank said operators of such apps were harassing customers by demanding money and threatening to publish sensitive photos on social media.
The central bank said providing loans through such apps without its authorisation is illegal under Section 15(2) of the Payment and Settlement System Act, 2024. Section 37(1) of the law provides for punishment for such offences, according to the notice.
Bangladesh Bank said the operators of these apps were committing punishable offences. It also cautioned that borrowers who register with such apps and engage in financial transactions could become involved in illegal activities.
The central bank urged the public to avoid using unauthorised online lending apps and participating in illegal lending transactions to protect their personal information and avoid legal risks.
Earlier, Bangladesh Bank had also warned against transactions through 22 unlicensed online payment aggregator platforms.
The platforms identified by the central bank include BahudurPay, GiniPay, Petilar, BengaliPay, Payora BD, ShohozPay BD, EasyPaywak, AK Pay, BD Pay, SajgharPay, AsthaPay/C Pay, UddoktaPay, Walletmix, BTTPay, Easy Pay Automation, UniquePay BD, BD Auto Pay, RH Pay BD, EZPay, AutoPay Limited, Bishwasto and PipraPay.
Under Section 4(2) of the Payment and Settlement System Act, 2024, no individual or organisation can operate a payment system or provide payment services without a licence from Bangladesh Bank. Section 37(1) of the law also prescribes penalties for violations.
The central bank’s Payment Systems Supervision Department identified the unlicensed payment aggregator platforms, the notice said. Bangladesh Bank advised the public to avoid operating or transacting through these platforms to safeguard their money and avoid legal complications.
