Online loan scams: Fraudsters dupe victims using World Bank name, logo

Several fraudulent rings are deceiving people by using the name and logo of the World Bank through Facebook pages filled with enticing advertisements for quick and affordable loans. Lured by these appealing offers, many people have already lost substantial amounts of money.

For instance, a Facebook page named "WB BD Services" advertises, "Do you need a loan to start a business or for personal reasons? The World Bank brings fast, affordable and secure loans. We strive to put a smile on the faces of small businessmen."

Another Facebook page, "Xiny A," posts a similar advertisement.

Victims say clicking the "sign up" or "apply" button on these pages prompts instructions to download an app. Once they complete an online form on the app, interested borrowers receive a WhatsApp link. Clicking that link opens a chat box associated with a WhatsApp number.

Upon entering the chat box, victims are instructed to send money ranging from Tk5,000 to Tk30,000 on various pretexts, such as registration fees, processing charges, and government taxes. They are promised their desired loans within a few hours if they complete this payment through bKash.

Alamgir Hossain, a garment worker from Gazipur, has lost Tk7,500 in the trap of the Facebook page WB BD Services.

"At first, I sent Tk5,000 as registration fee to a WhatsApp number and then sent Tk2,500 as transfer fee. I began to be suspicious when they asked for more money. When I asked for my money back, they blocked my number," he told The Business Standard.

"I believed it after seeing the name and logo of the World Bank. So, I did not hesitate to send the money. I called the number to which I had sent the money and found that the number was closed. I realised I had been scammed. Later, I found that many people like me had been cheated by these pages," he said.

While not all such fraudulent pages use the World Bank's name and logo, TBS has identified at least 15 Facebook pages employing similar tactics. These pages advertise long-term loans with seemingly attractive terms.

Future Lending, Online Lending, Borrow Box, Borrow Box 002, Grow Trust, Best Cards in Bangladesh, Money Lion, CIBM Loan of Bangladesh, Big Vhua AA, Jeffery Ross, Xiny A, Mladilikova2, WB BD Services, and Asd are some of such pages.

The page "CIBM Loan Bangladesh of Online" even promised special benefits to attract women entrepreneurs specifically.

Several victims of the scams told TBS that despite the different page names, the fraudulent techniques and patterns employed were largely identical.

Experts say these fraudsters do not limit their activities to profiting in the guise of lending. Through their apps, they gain control of customers' mobile devices and resort to blackmail by extracting personal photos and information from them.

Losing Tk75,000 hoping to get a loan of Tk1 lakh

Lured by a page called Money Lion, Moulvibazar's dried fish businessman Al Amin lost Tk75,000 in the hope of securing a loan of only Tk1 lakh.

"After clicking on a link sent to me," Al Amin said, "I was prompted to download an app and create an account. Subsequently, I received a WhatsApp link through my messenger. Upon clicking it, a person named Mostakim, claiming to be from Money Lion, greeted me and offered a loan of Tk1 to Tk20 lakh at a mere 6% interest rate. I agreed to borrow Tk1 lakh.

"Money Lion then created an online wallet within their app, utilising my voter ID card and bank account information. They then instructed me to send a registration fee of Tk5,000 to a specific bKash agent number. Following my payment, Money Lion deposited Tk105,000 into my app wallet. However, when I attempted to transfer the money to my bank account, I received an error message stating an invalid account number."

Al Amin said, "Desperate to rectify the error, I contacted the previously provided WhatsApp number. However, I was informed that I needed to pay a deposit of Tk30,000. Trusting the number, I complied, even after sending another Tk30,000. This seemed justified when my wallet seemingly held Tk135,000. Yet, when I attempted to withdraw the funds, new obstacles emerged.

"I was bombarded with excuses and demands for additional fees: Tk10,000 for insurance, another Tk10,000 for govt tax-VAT, and finally, Tk10,000 for a transfer fee. Desperate for my money, I naively complied with each request."

Finally, when Al Amin decided not to take the loan and demanded a full refund, they imposed yet another fee: Tk5,000 for loan cancellation.

"At this point, their malicious intent became clear. They blocked my WhatsApp number, leaving me with nothing but lost hope and empty pockets," Al Amin said.

TBS attempted to contact the bKash numbers used in the scam but discovered they were no longer active. When contacted for comment on these numbers, bKash's corporate communications officer Roxana Milli declined to comment.

Victims allege that the scammers close the pages after defrauding several individuals to avoid detection by law enforcement. However, they claim the perpetrators later launch new pages under different names and resume their fraudulent activities.

Asif Mohiuddin, additional deputy commissioner of Chattogram Metropolitan Police's Counter Terrorism Unit, who has been working in the field of cybercrime, said, "These pages are primarily operated from outside the country. However, they have local agents who assist them through various stages of the scam, including opening bKash accounts using fake identities.

"We are actively working to identify these individuals and bring them to justice."

There's no authorised online lender: Bangladesh Bank

Mesbaul Haque, executive director of the Bangladesh Bank, told TBS that the central bank has not authorised any institution to offer online loans. He urged customers to verify the legitimacy of any institution offering financial services by visiting the Bangladesh Bank's website before engaging in any loan or transaction.

"Financial transactions with unauthorised institutions pose significant risks," he emphasised.

"The Bangladesh Financial Intelligence Unit, a specialised wing of the central bank, diligently investigates and addresses any reported cases of fraud or irregularities," he added.

How to be safe from such scams

Leading Bangladeshi fact-checker Qadaruddin Shishir urged digital platform users to exercise caution when encountering online loan offers. He emphasised that no legitimate institution in Bangladesh grants loans without collateral and solely based on a national identity card, photo, mobile number, and email address.

"Users must be aware that advertisements promising quick and easy loans with low interest rates within minutes or hours are fraudulent," Shishir warned. "These scammers lack a physical presence and avoid direct communication with potential victims. Moreover, examining website URLs reveals the absence of the "s" after "http", indicating an insecure website."

Shishir further advised against clicking links or downloading apps from such pages. He urged Facebook users to refrain from engaging with buttons labelled "Sign up" or "Apply" on these pages.