A total of 422 operators of unlicensed digital lending platforms, have been arrested in Accra, for allegedly engaging in the distribution of clients' data and issuing death threats to victims.
The suspects, who include three foreigners, are currently on bail, assisting in investigations, were also believed to be involved in extortion and cyberbullying.
The joint cyber security taskforce, made up of the Economic and Organised Crime Office (EOCO), Bank of Ghana (BOG), the Cyber Security Authority (CSA) and Ghana Police Service, which conducted the swoop on July 10 at three undisclosed locations, also retrieved 654 mobile phones, 22 laptop computers and 800 SIM cards.
After screening by the taskforce, the suspects were found to be associated with Mascedi Consultant, Valley A. Consult, Makto Technology Limited and FourCredy which operate the FourCredy, FiCashX, 4Cedi, Aliloan, Boseapa, CediBoom, Cocoaloan, Mach Loan, Easy Loan, Onloan and other mobile applications (Apps) involved in the scheme.
Speaking at a joint press conference in Accra yesterday, Director General of the CSA, Dr Albert Antwi-Boasiako said, the Authority was inundated weekly with about 250 reports of cyberbullying experienced by users of Apps.
He said the influx of the lending Apps was in contravention of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), adding that their access and use of the data of users was also in violation of the Data Protection Act, 2012 (Act 843).
During installation of the identified Apps, he noted that the data of victims including name, phone number, Ghana card ID number, contacts, photos, among others were permissible to be accessed.
Dr Antwi-Boasiako called on Ghanaians to review access permissions for mobile applications carefully before installing them.
He said persons who patronise the services of the lending digital platforms do so at their own risk, adding that "people will be immune to cyberbullying if they stop subscribing to these fraudulent online loan apps."
Executive Director of EOCO, Commissioner of Police (COP) Maame Yaa Tiwaa Addo-Danquah, noted that following reports of the activities of unlicensed digital loan application platforms, the taskforce undertook the exercise to clamp it down.
She said initial investigations led to the identification of 150 unlicensed digital loan application platforms whose owners or administrators resort to the use of death threats and the non-consensual distribution of private messages, images and videos of unsuspecting victims who patronise these digital platforms.
The EOCO, she noted was undertaking forensic investigations into the devices confiscated to secure evidential materials needed for prosecution.
COP Addo-Danquah cautioned Ghanaians to desist from having any form of engagements with unlicensed financial entities that engage in digital lending, adding that EOCO was committed to the enforcement of relevant laws on the operations of the financial markets in Ghana.
Dr Joseph France, Director of Financial Stability, Bank of Ghana, said the Bank owing to the influx of such platforms, had alerted the public about the risk of patronising credit products of the unlicensed online credit service providers and further warned financial institutions not to provide services to the entities in furtherance of their illegal activities.
He stated that, the BoG had further intensified its public education through various media outlets following complaints bordering on consumer abuse and harassment, data protection and privacy, identity theft and cloning, and money laundering and terrorism financing, among others.
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The Bank, he said was focused on building a robust, resilient and safe digital financial service industry through the establishment of the requisite regulatory and supervisory systems to promote a digital financial service space of integrity that safeguard the interest of consumers.
The BoG, Dr France said was determined to rid the space of all illegal service providers, adding that the Bank had engaged international platform service providers on the current security concerns and was collaborating on a solution to prevent hosting of unapproved credit apps targeted at the Ghanaian market.
