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Business & Economy

How the Elderly Are Being Exploited by Unregulated Loan Apps

Unregulated digital loan apps in Ghana exploit older adults, using aggressive tactics and high interest, causing financial distress, eroding trust, and highlighting regulatory gaps

How the Elderly Are Being Exploited by Unregulated Loan Apps
Makida El Husseini
Dec 16, 2025

The rapid rise of digital lending platforms in Ghana is quietly reshaping access to credit, but behind the promise of convenience and financial inclusion lies a darker economy thriving on weak regulation, cross-border anonymity and vulnerable users.

Among the most affected are older adults who are less familiar with the fine print of mobile applications yet increasingly dependent on smartphones for daily life. For many, what begins as curiosity or precaution quickly turns into financial distress.

A 42-year-old Ghanaian teacher, who requested anonymity for fear of stigma and further harassment, told The High Street Journal in an interview how a loan app she never applied to left her emotionally shaken and financially strained. She said her ordeal began not with borrowing but with scrolling.

“I was just flipping through my phone and then I saw an advertisement. It just popped up and I said let me just have a look at how it is done,” she recounted. Her intention, she explained, was not to take a loan immediately but to understand the process in case of an emergency. After downloading the app and entering her details, she closed it without requesting any money.

Days later, she received an alert informing her that money had been deposited into her account. “I checked but I couldn’t trace the name. I thought it was a scam. I didn’t even check the amount. I was expecting the person to call if it was a mistake,” she said. No call came. Instead, a week later, her phone rang.

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“The person called reminding me of a loan,” she said. When she insisted she had not applied for any loan, the caller mentioned an amount and a sender’s name linked to the app she had downloaded. Her refusal to accept responsibility was met with threats. “They said unless I pay the interest, they will publish me that I owe them.”

What followed was a pattern increasingly reported by victims of rogue loan apps operating within Ghana’s digital space. The caller’s accent, she noted, was not Ghanaian. “The voice was Nigerian,” she said. Even more troubling was the payment instruction. When she agreed to return the money with interest to end the harassment, she was given the contact information of a different person to send the funds to. “I don’t know if that person was also requesting a loan or whatever,” she added.

The interest charged shocked her. “The interest was almost a hundred percent. Just within a week. It was so high,” she said. Unplanned and unbudgeted, the payment forced her to scramble for money to protect her reputation and peace of mind. “I felt so bad. Something I didn’t plan for, didn’t budget for, I had to pay,” she said.

Her experience reflects a growing economic concern as unlicensed digital lenders exploit regulatory gaps and consumer ignorance. While Ghana has made progress in regulating microfinance and digital credit through the Bank of Ghana, many loan apps remain outside effective oversight, especially those hosted on foreign servers or operated by entities with no physical presence in the country. These platforms often access users’ contact lists and personal data, using public shaming as a coercive recovery tactic.

For older users, the risk is heightened. Many fall outside the tech-savvy youth demographic yet are targeted through aggressive in-app advertising. Unlike younger users who may be more accustomed to scrutinising app permissions, older adults are more likely to trust interfaces that appear professional or financially branded.

The woman said the experience has permanently altered her perception of digital loans. “If I see any such advertisement, I won’t even bother to check what is there unless somebody has recommended that app to me,” she said, describing the ordeal as “a punishment.”

Beyond individual trauma, the economic implications are significant. Victims divert funds from household needs, education and small business operations to settle fraudulent claims. Confidence in legitimate digital financial services is eroded, undermining national efforts toward cashless transactions and financial inclusion.

As smartphone penetration deepens across Ghana and economic pressures push more citizens toward quick credit, the line between innovation and exploitation continues to blur. Without stronger enforcement, public education and cross-border regulatory cooperation, stories like this may remain hidden yet widespread.

For this 42-year-old teacher, the lesson came at a steep price. “I deleted the app. I never saved it again,” she said. For policymakers and regulators, the warning is louder. Digital credit without protection is not inclusion. It is an extraction.

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