No letup in online fraud

With digital penetration being on the rise, the online fraud is also surging up at a fast pace preying on a cross-section of people, suggesting that there is no end to it.

Unlike a number of online fraudsters who are currently facing the music, RingID has been a keener escaper and running the show from overseas at its own sweet will.

RingID Managing Director Sharif Islam and Chief Executive Officer (CEO) Irene Islam were arrested on December 27, 2016 after embezzling Tk 240 crore from the government through call fraud using Teletalk number.

The CID arrested the duo at the request of the Bangladesh Telecommunication Regulatory Commission (BTRC).

The couple had been in jail for a month and a half, but after being released on bail, they managed to flee the country using a Canadian passport.

The BTRC said its investigating officer sent a letter to the Special Branch of Police (SB) to prevent the cheats from fleeing the country after bail even if they try to do so using foreign passports.

According to the letter, the Special Branch of Police under the Immigration Department stopped them at Hazrat Shahjalal International Airport while they were trying to go to Malaysia, but Sharif and Irene could make it on their second attempt.

According to the investigators, the two are now on the run.

While being in Malaysia, a new version of online fraud is being committed by the fraudsters using RingID - holding out lucrative offer to invest in Canada and also to get a membership offer that would double the profit in one year.

Thus, in the three months from May to July this year, the swindlers have swindled over Tk 212 crore.

Meanwhile, Bangladesh Financial Intelligence Unit froze three bank accounts with Tk 150-crore deposit belonging to Ring ID.

The victims throw up the question how the two accused, despite being fugitives, managed to dodge the eyes of the law enforcement agencies, made away from the country and are making money through the new scheme.

Rafiul Alam, a victim, said he knew there is a Bangladeshi social media called RingID, and received an offer of making Tk 500 per day through an investment of Tk 22,000 for gold membership.

“Sensing the offer from RingID on Facebook and YouTube, I thought it safe, and bought two Gold memberships, but I did not get any code number for the so-called membership,” he asserted.

“Meantime, when RingID director was arrested, I came to my senses that I have been deceived.”

However, the victim said he did not know that the owner of RingID had been arrested on fraud charges before.

“At least various agencies, including the police, knew about the RingID’s fraudulent scheme. Therefore, how does it manage to run an office in Dhaka and get a chance to grab money with new tactics?” he posed a question.

Last Sunday, RingID Director Saiful Islam was arrested from Gulshan area by the CID.

Saiful told police that he did not know where and how the money was deposited after collecting it from their customers.

Everything was under Sharif’s control. The police estimate that he has smuggled hundreds of crores of taka to Canada.

According to CID officials, RingID made Tk 23.94 crore in May, Tk 109.13 crore in June and Tk 79.38 crore in July in the name of offering three types of membership namely Gold, Silver and Platinum.

It was that the money will be invested in Canada, but their main purpose was to siphon it in a different way.

Special Superintendent of Police SM Ashrafuzzaman of CID’s Cyber Crime Investigation and Operations Division told The Business Post that they were not aware that RingID had swindled crores of taka in 2016 through Teletalk call fraud.

At that time, the BTRC authorities filed a case against RingId with Shahbagh Police Station.

At the request of the BTRC, the CID members arrested the two big shots of the so-called social networking platform and handed them over to the investigators.

According to BTRC sources, since 2013, International Gateway Service (IGW) VisionTel Limited and ICX CloudTel forged over 5 crore minutes using the state-owned Teletalk Company’s number series (01515) or prefix.

The two companies and RingID are owned by the same couple -- Sharif Islam and Irene Islam.

As the allegation was proved, the BTRC ordered them to pay a total of Tk 50 crore, including an administrative fine of Tk 11 crore 8 lakh and Tk 1 crore 27 lakh.

In addition, VisionTel and CloudTel owed the government more than Tk 240 crore, including annual licence fees, revenue sharing and delay fees. Of this, Vicentel alone owes Tk 191 crore.

The BTRC authorities canceled the licence of VisionTel Limited on June 16, 2015 as it did not pay the debt.

BTRC Assistant Director Md Kawsar told The Business Post, “We have already filed charge sheets against them in two cases. I even requested the immigration authority to take measures so that they can’t escape without paying the debts.”

“I still don’t understand how they could get away.”

On the question of how Sharif Islam and Irene Islam are running the show as a fugitive from abroad, he said “I have been transferred from the Department of Investigation to the Department of Accounting. I can’t say how it is being run, and on the other hand witnesses in this case are also not appearing in the court.”

Top officials of BTRC could not be reached for comment.

A BTRC official, who did not want to be named, told The Business Post that in 2012, 24 International Gateway Service (IGW) companies were given licence under the influence big fish, and on April 12, 2012, VisionTel Limited was at number 7 of the IGW’s licencing list.

RingID was introduced in 2015 when Sharif Islam had a bank deposit of Tk 55 lakh, but was able to withdraw that money before arrest.

One of the CID investigation officials said although RingID is a social networking platform, it planned to launch e-commerce and mobile banking services (MFS) like bKash.

The company sought permission from the Bangladesh Bank to operate mobile banking called Ring Pay.

Besides, it collected Tk 212.85 crore through some 1000 agents to conduct deposit collection activities under the guise of various services including foreign investment and community jobs.

The purpose was to smuggle the whole money abroad, especially to Canada, said the official.