In this age of digitalisation more people are opting for mobile banking everyday due to its fastness. While this particular mode of transaction does save valuable time, it still has its risks that are steadily increasing every day.
Digital fraud seems to have become an inevitable consequence of this process. According to several law enforcing agencies, mobile banking is top on the list of methods conmen use to swindle people out of money.
There are currently 18 mobile banking services in the country and a misuse of this technology has given rise to a large circle of swindlers.
Nearly 400 people involved with these circles have been arrested, so far. On an average, two cases of mobile banking frauds are filed every day.
Law enforcers say that even though this mode of banking is mostly used by people who can’t read or write it’s the educated ones that fall victim to such skulduggery.
The fraudulent schemes are not limited to embezzling money only. Illegal monetary transactions are made through mobile banking with the involvement of various agents of the organizations. So far, 27 agents have been sued for illegal transaction and money laundering.
Dhaka dwellers top amongst conned
Around 24 percent of Dhaka Division netizens are amongst the victims of mobile banking fraud. Port city Chattogram stands second in the list with 18 percent.
According to police, a majority of these conmen are from Faridpur, Shariatpur, Madaripur and Cumilla.
Illegal money transaction through mobile banking
Statistics from law enforcing agencies say that illegal money transaction is top on the crimes committed through mobile banking. Transaction of money for things like, drug, human trafficking, smuggling, extortion, murder, kidnapping, hundi, embezzlement, ransom, militancy and many others are abundant through mobile banking.
Agencies dealing with mobile banking fraud
In addition to police, five units are working to nab and take action against this kind of fraud and transaction. They are: central bank’s Bangladesh Financial Intelligence Unit (BFIU), Dhaka metro police’s Counter Terrorism and Transnational Crime (CTTC) Cyber and Crime Division and Rapid Action Battalion, Crime Investigation Department (CID) and Detective Branch of the police.
Allegations against mobile banking agents
Mobile banking agents are involved with illegal money transaction for hundi, narcotics and smuggling. In 2017, BFIU provided the CID with a list of 2,888 suspected Rocket, B Kash and other mobile banking agents. The crime department marked 25 people out of that list and led raids to arrest them.
In January 2018, CID arrested 11 of these agents. In addition to that, Dhaka metro police (DMP) and RAB arrested 16 more.
The most significant arrest in relation to mobile banking was made in 2015. Detective Branch arrested three BKash agents from the capital’s Demra with 300 sim cards, 900 photos and 850 fake national IDs. Police said that they were involved with various fraudulent activities including question paper leaks.
What law enforcers say
DMP spokesperson Masudur Rahman told Bangla Tribune that most people don’t understand mobile banking properly which makes it easier for the conmen to carry out their schemes.
“The frauds embezzled people’s money through offers through tempting offers,” the deputy police commissioner said.
He said that the agents do not protest their client information and the frauds usually collect the numbers of their targets from these agents.
“The safety of mobile banking is largely based on technology,” said Assistant Inspector General Sohel Rana of the Bangladesh Police headquarters.
He added that it’s the respective organisation’s responsibility to ensure the safety of the clients.
“Police do warn those organizations if they receive complaints from the clients,” he said and added that they take necessary actions after probing the complaints.
What do organisations facilitating mobile banking have to say?
The country’s leading mobile banking operator BKash claims that this mode of banking fraud has gone down.
BKash head of Corporate Communications Shamsuddin Haider Dalim said that the company repeatedly keeps its customers informed about these con artists through media platforms.
“If anyone does fall victim, they have to immediately contact the customer service,” he said.
According to a central bank report published last March, mobile banking has over 60 million registered users. However, amongst them, only 26.2 million are active.
These users make transaction of Tk 11,000 on average everyday and there are more than 800,000 agents in the country.
Dutch Bangla Bank’s ‘Rocket’ is the second most used after BKash. A little over 55 percent of the transactions are made through B Kash, 38.26 through Rocket and 6.63 percent through other services.
Meanwhile, a Bangladesh Institute of Banking Management (BIBM) survey shows that 21.7 percent of people who can’t read or write use mobile banking. After that 19.9 percent primary education recipient, 18 percent secondary education recipient, 16.2 percent high school graduates use this particular mode of banking.