Unlicensed digital lending platforms in Ghana are subjecting borrowers to graphic threats, fabricated criminal accusations and relentless harassment when repayment deadlines are missed, turning convenient access to small loans into psychological torment for many victims.
The Cyber Security Authority received 377 complaints between January and May 2025, a 65 percent increase from 228 cases reported in all of 2024, signaling an alarming resurgence of predatory tactics targeting vulnerable borrowers across urban centers including Accra, Kumasi and Takoradi.
A young student in Accra, who preferred to remain anonymous, experienced the reality of these practices firsthand. He had borrowed a small sum from a mobile loan application, confident he could repay it on time. When unforeseen circumstances prevented him from meeting the repayment date, the situation escalated rapidly.
Initially, he received routine reminders and follow-up calls. Soon, the notifications turned threatening. He began receiving graphic images of violence with his name falsely attached, along with messages claiming he was responsible for serious crimes. The messages warned him that the images would be shared publicly unless he paid immediately.
The harassment extended beyond him. Contacts he provided as next of kin, which included a friend and a family member, were also targeted, receiving calls and messages urging them to pressure him to repay. They were exposed to the same threats, amplifying the stress and fear experienced by the borrower. The campaign of intimidation was relentless, using both fear and social pressure to coerce repayment.
Experts warn that such tactics constitute criminal activity. A digital security analyst at the University of Ghana noted that when apps threaten borrowers or their contacts, circulate manipulated images, or assign false criminal responsibility, that is digital extortion and is illegal under Ghanaian law. Many victims do not report it, which allows these apps to continue operating without consequence.
The Cyber Security Authority identified 38 digital lending mobile applications engaging in cyberbullying, noting that the apps contravene the Banks and Specialised Deposit-Taking Institution Act, 2016, Act 930, while their access to user data violates the Data Protection Act, 2012, Act 843.
The Authority clarified that victims tend to grant the apps access to their data including contacts, photos and personally identifiable information including the Ghana Card during installation. When a user installs the app, an amount usually less than 200 cedis is automatically credited into the user’s mobile money wallet even without an actual loan request.
One week after disbursing the loan, the fraudsters use extortion tactics including demanding loan repayment with high interest rates from the victim or an associate, threatening to circulate actual or fabricated nude photos of the victim on social media, and blackmailing the victim by labeling them as a thief or wanted criminal.
The Bank of Ghana has warned all mobile loan applications and digital credit providers operating without a license to regularize their operations by June 30, 2026, or risk penalties, suspension or shutdown. The central bank began accepting applications from companies seeking to operate as Digital Credit Services Providers on November 3, 2025.
Civil society organisations have raised concerns about the lack of accountability and the psychological toll on borrowers. A consumer rights advocate in Accra explained that digital lending can fill a gap in financial services, but intimidation cannot be the price for borrowing. Victims of harassment, whether direct borrowers or people connected to them, experience severe mental distress and social stigma.
For the student, the experience left lasting effects even after he managed to repay the loan. He paid what they asked, but the trauma stayed with him. They made him feel like a criminal for borrowing a small sum. It is not just about money but about dignity, privacy and safety.
The Cyber Security Authority has so far identified 48 rogue loan apps, many of which are still active in the Ghanaian digital space. Some of the blacklisted platforms include Miniloan, Devtage Loan, Mix Loan, Ozzy Money Cash, Plus Cash Arrow, Cash Arrow, FundsCredit, Lever Credit, GetLoan, Upper Loan, Kcash, BestLoan, Gcash, DaraLoan, Loanbase, TapLoan, Gh Loans, Sune Loans, Urgent Money, SparkLoan, SkyLoan, Loancloudgh and Pea Money.
In July 2023, a joint cyber security taskforce comprising the Economic and Organised Crime Office, Bank of Ghana, Cyber Security Authority and Ghana Police Service arrested 422 operators of unlicensed digital lending platforms. The suspects, who include three foreigners, were allegedly engaging in the distribution of clients’ data and issuing death threats to victims.
The taskforce retrieved 654 mobile phones, 22 laptop computers and 800 SIM cards during the operation at three undisclosed locations. After screening, the suspects were found to be associated with Mascedi Consultant, Valley A. Consult, Makto Technology Limited and FourCredy which operate various mobile applications involved in the schemes.
Despite the Cyber Security Authority making nearly 400 arrests, digital lending operators continue to give out loans, with regulators struggling to control the situation. Amidst Ghana’s economic challenges, some residents resort to unconventional means to make ends meet, seeking quick and easily accessible money with no collateral.
The high interest rates and short repayment periods lead to difficulties in repaying on time, resulting in harassment and emotional trauma for borrowers. The Authority’s Senior Manager Isaac Mensah has warned that they will intensify efforts to target unlicensed operators.
Before writing on this topic, a check on the Bank of Ghana’s website revealed only one approved digital lending application: Fido Micro Credit Limited. However, a search on Google Playstore reveals several unlicensed loan applications. In June 2023, the Bank of Ghana issued a warning to the public and published names of about 97 lending applications operating illegally.
The rise of these unlicensed loan applications has become a concerning trend, posing significant risks to both the financial system and the individuals who patronize these services. These apps, often operating outside the legal framework and sometimes outside the boundaries of Ghana, offer quick and easy access to loans but come with hidden dangers that can lead to financial ruin, data theft and even money laundering.
Limited access to traditional banking services has created a gap that unlicensed loan apps are eager to fill, offering services to those who may not qualify for traditional loans due to lack of collateral, credit history or formal employment. The technological advancements and increased internet penetration in Ghana have made it easier for individuals or entities to set up digital lending platforms with minimal barriers to entry.
Stories like the student’s highlight the dark side of digital lending in Ghana. While mobile loans offer speed and convenience, the absence of strong regulation and oversight allows unethical operators to exploit borrowers, often turning small debts into crises that extend far beyond finance. Without decisive regulatory action, many Ghanaians will continue to face harassment, threats and digital intimidation as part of what should have been a straightforward borrowing experience.
The Cyber Security Authority has activated its 24-hour cyber incident response platform, through which victims or concerned users can report suspicious digital activity. Ghanaians are urged to remain vigilant and avoid interacting with loan apps not regulated by the Bank of Ghana or listed under approved financial service providers. The Authority says it is working with other relevant institutions to remove these apps and hold developers accountable.
For support or to report abuse, users can contact the Cyber Security Authority’s incident reporting lines by calling or texting 292, WhatsApp 0501603111, or email [email protected].