Bangladesh authorities shut down more than 20,000 mobile financial service (MFS) accounts in the previous month over alleged links to predatory lending, online gambling, unauthorised cryptocurrency activity and illicit fund transfers, reported by The Daily Star.
The action follows earlier measures by the Bangladesh Financial Intelligence Unit (BFIU), which reported freezing or suspending transactions involving about 55,000 MFS accounts linked to online gambling and digital hundi activities.
Authorities are continuing to monitor mobile financial services for suspected money laundering, illegal gambling and unauthorised financial transactions.
The reported closure of more than 20,000 mobile financial service accounts in a single month reflects the broader campaign against digital financial crime. In June, Bangladesh’s finance minister told parliament that the BFIU had frozen or suspended transactions involving about 55,000 MFS accounts linked to allegations of online gambling and digital hundi activity.
The scope of enforcement actions is also expanding. The BFIU has published guidelines about accounts subject to freezing orders, and Bangladesh Bank has produced circulars about financial institutions, reporting requirements, and money-changing operations. Instead of depending only on payment providers, police and financial intelligence organisations are increasingly looking at the networks underlying questionable activity.
The purported mistreatment of customers by fraudulent or unapproved digital lending apps is a primary focus of the campaign. With their speedy approvals, minimal paperwork, and direct transfers to mobile wallets, these firms frequently position themselves as alternatives to conventional lenders.
Reports on fraudulent loan apps in Bangladesh have named FinCash, Money, PopKash, CashNow, Drutoloan, Fast Loan, Shathi Loan and Quickloan. The Daily Star has reported on borrowers targeted through fake online loan offers and identified several of these apps. At the same time, Bangladesh Bank has stated that such loan-offering applications are illegal. According to reports, some apps seek access to users’ contact lists, photographs and private media files during installation. That information can allegedly be used to pressure borrowers who fall behind on payments.
As reported by The Daily Star, Touhida Akter, a homemaker in a challenging financial situation, fell for an online loan scam after she saw an advertisement on Facebook for loans between BDT 50,000 (approx. $408) and BDT 500,000 (approx. $4,082) with 5 per cent interest.
The page under the name of Ashar Alo Foundation first required her to pay BDT 450 (approx. $3.7) for a form and the stamp for applying for the loan. After she paid the fee, she was then told to deposit BDT 100,000 (approx. $816) as a refundable security deposit, which was said to be returned after she made two loan payments.
Desperate to secure a BDT 500,000 (approx. $4,082) loan, Touhida transferred her life savings. However, shortly after receiving the money, the operators behind the page stopped responding. Ashamed of the incident, she said she had not informed her family about the loss.
Another case reported by The Daily Star was Rabiul Alam, a private-sector employee, who said some apps disappear with users’ money. In contrast, others lure borrowers with quick loans before imposing exorbitant interest rates, sometimes as high as 800 per cent.
Rabiul said these apps often gain access to sensitive personal data during installation, including contact lists, photos and videos stored on users’ phones. Victims who refuse to pay the inflated interest rates are then subjected to cyber harassment and threats that their private information will be shared publicly.
He was allegedly defrauded through an app called FinCash, which advertised loans of up to BDT 30,000 (approx. $245). According to the report, Bangladesh Bank forbids consumers from using unlicensed digital lending platforms and views such loan-offering apps as unlawful.
Fraudulent online schemes extend beyond fake loans to include gambling, betting and cryptocurrency trading platforms, all of which are illegal in Bangladesh. Law enforcement agencies have reportedly identified cases in which certain mobile financial service providers facilitated loan-related transactions and other unauthorised activities during investigations into online fraud.
A Bangladesh Bank inspection found that Fasset, a UAE-based virtual asset platform established in 2019, operates in Bangladesh through its website, mobile application and social media channels, as reported by The Daily Star. While the company is licensed by Dubai’s Virtual Assets Regulatory Authority (VARA), the central bank said it is not authorised or licensed to operate in Bangladesh.
In a recent notice, Bangladesh Bank warned that some entities are using social media and online channels to lure people with promises of unusually high investment returns. The regulator said fraudsters often trick victims into sharing one-time passwords (OTPs) or falsely claim to offer refunds, social welfare payments, Hajj-related funds or other government benefits to steal money.
The Bangladesh central bank warns that it is not safe to carry out financial transactions with such companies and those engaging with illegal operators should be aware that they can be held liable for all financial losses incurred.
Bangladesh has officially enacted the Gambling Prevention Act, 2026, which completely replaces the Public Gambling Act of 1867 and aims to crack down on digital betting aggressively. The new legislation officially took effect on 1 July 2026, following parliamentary approval and presidential assent.
The law covers online betting, virtual betting, fantasy betting, digital gambling platforms, cryptocurrencies, digital wallets, fake MFS accounts, and other tools that can support gambling operations.
The indispensable role played by financial channels in the operation of digital criminals should also be stressed. While there can be changes of servers and renaming of applications, payment systems are unavoidable. The banks, the mobile financial systems and the digital wallets can still make it very difficult for illegal operations to continue. The new law provides for certain cases of confiscation by the courts of the property connected to the crimes regarding gambling, with financial accounts being one of them.
