Bangladesh Bank has warned that fake loan apps are stealing users' sensitive personal information, photos, videos and text messages, exposing borrowers to blackmail, harassment and demands for unusually large sums of money.
In a warning notice issued today (18 October), the central bank said operators of these apps were using customers' personal information to threaten to publish sensitive photos on social media and extort money.
Providing loans through such apps without Bangladesh Bank's approval is illegal, the central bank said, urging the public not to use the apps to borrow money or participate in their lending activities.
According to the notice, lending operations conducted without approval violate Section 15(2) of the Payment and Settlement Systems Act, 2024, while Section 37(1) of the law prescribes punishment for such offences.
The central bank said the operators were directly committing punishable offences. Borrowers who register with the apps and conduct financial transactions through them could also become involved in unlawful activities, it warned.
Bangladesh Bank urged the public to avoid illegal lending services operated through mobile applications.
22 unlicensed payment platforms identified
In a separate warning issued on Sunday, Bangladesh Bank advised the public against conducting transactions through 22 online payment aggregator platforms operating without the required licences.
The platforms are BohudurPay, ZiniPay, PayTiller, BengaliPay, Payora BD, SohojPay BD, EasyPayWay, AK Pay, BD PAY, ShajgarPay, AsthaPay/CPay, UddoktaPay, Walletmix, BttPay, Easy Pay Automation, UniquePay BD, BD AUTO PAY, RH Pay BD, EzePay, AutoPay Ltd, Biswasto and PipraPay.
The central bank said providing payment services without its approval is illegal and punishable under the Payment and Settlement Systems Act, 2024.
Under Section 4(2) of the act, no individual, institution or company may operate a payment system or provide payment services without a licence from Bangladesh Bank. Section 37(1) sets out penalties for such offences.
The central bank's Payment Systems Supervision Department identified the 22 platforms as providing online payment aggregator services without the required licences.
Bangladesh Bank advised the public to avoid operating or conducting transactions through the platforms to protect their money and minimise legal risks.
It reiterated its warning against unauthorised financial services and urged people to refrain from engaging with illegal online lending apps and unlicensed payment platforms.