The Cyber Security Authority (CSA) of Ghana has issued a stern warning to the public regarding the use of digital lending mobile applications (Apps) following a surge in cyberbullying incidents reported by users.
According to a press release from the CSA, they have received approximately 130 complaints from victims who fell prey to unauthorized loan apps operating without approval from the Bank of Ghana (BoG) and the Data Protection Commission.
The modus operandi of these fraudulent apps typically involves luring users with small initial credits, often less than GHS 200, directly deposited into their mobile money wallets upon installation, even without a loan request.
Subsequently, within a week of disbursing the loan, cybercriminals resort to extortion tactics.
These tactics include demanding repayment with exorbitant interest rates, threatening to publish real or fabricated compromising photos on social media, and intimidating victims by labeling them as criminals.
“Even after victims comply with repayment demands, some fraudsters persist in extorting additional payments,” the CSA revealed. It was highlighted that victims inadvertently grant these apps access to their personal data such as contacts, photos, and personally identifiable information (PII) like Ghana card IDs during the app installation process.
Among the identified loan apps flagged by the CSA are Ahomka Loan, Antcredit, Beanloan, Bestloan, BezoMoney, Boomloan, Casharrow, Cashwave, Cmgh Loan, Cosycredit, Credit Bag, Divacash, Express Loan, Five Loan, FullCredit, Homecredit, and Unik Credit, among others.
These apps have been found to operate in violation of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), as per the Bank of Ghana’s notice BG/GOV/SEC/2022/10.
Furthermore, the CSA emphasized that the owners of these apps have not met the compliance requirements stipulated by the Data Protection Commission (DPC), thus infringing upon the Data Protection Act, 2012 (Act 843) through unauthorized access and use of users’ data and PII.
In light of these alarming developments, the CSA urged the general public to refrain from using these unauthorized loan apps and advised immediate reporting of any cybersecurity or cybercrime incidents to the Authority.
They underscored the importance of vigilance and caution when engaging with digital lending platforms to mitigate risks associated with cyberbullying and data privacy breaches.
