DB stops 5 offering unlicensed electronic same day loans

The detective arm of the police arrested five members of a fraudulent network who were operating an unlicensed digital microfinance business of unsecured same day loans with an excessive interest rate.

The DB’s web-based crime investigation team arrested them on Tuesday and Wednesday in the capital’s Dhanmondi, Banani and Mirpur regions, DB additional commissioner AKM Hafeez Akhter said during a press briefing yesterday.

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Those arrested are Emanuel Edward Gomes, Arifuzzaman, Shahinur Alam Rajib, Shuvo Gomes and Akram.

They were operating financial institutions like Thunder Light Technology, New Vision Fintech and Basic Development Society without government approval, according to Akhter.

The official said the arrests were made on online apps such as Tkala, AmarCash, CashCash, Cashman, RapidCash and Cashkash – which conduct excessive interest-based transactions on behalf of unsecured same day loans"}” data-sheets-userformat=”{"2":513,"3":{"1":0},"12":0}”>same day loans

The servers for all of these applications are located in China and are operated primarily from China with the help of Bangladeshi citizens. The apps lure unsuspecting customers by running flashy advertisements for low interest unsecured loans.

The defendants were collecting information about customers without legal authorization.

When customers install the apps, the apps access the calendar, camera, photos, contacts, and device location without customer permission.

“In this case, the protection of the customer’s personal data is seriously threatened,” he said.

The official said those arrested used to attract clients by advertising on Facebook, YouTube and other social media platforms in the name of granting unsecured loans at interest rates. low.

They mainly target low-income people and unemployed students in financial crisis.

Targeted customers either click the link in the ad or download the apps from the Google Store.

The account is then opened with the customer’s national identity card, phone number, phone numbers of other family members and other information, including their personal information.

They provide loans for a short period of three to seven days with excessive processing fees and high interest rates on demand as per demand.

If the customer requests 3,000 Tk, only 2,190 Tk will be returned to him after removing the processing fee of 810 Tk. After seven days the customer must pay a total of Tk 3,018.

If the customer does not pay, a high interest rate is applied daily.

Apart from this, 120 Tk for administration fees, 160 Tk for data analysis fees, 15 Tk for value added tax and 5 Tk for interest were deducted.

The higher the amount, the greater the tendency to deduct money, the official said.

“A lot of people have fallen into this trap,” Akhter said.

A complaint was filed with the Dhanmondi Police Station under the Digital Security Act following a victim complaint, the official added.

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