One morning, Mr. Russell woke up to a phone call. On the other end was a man introducing himself as the "Jinn er Badsha," informing him that he had won a lottery. All he needed to do was send Tk 50,000 to claim it. Absurd as it sounded, the scam was entirely real. As he went to brush his teeth, he discovered that the toothpaste he was using was fake, a cheap, dangerous imitation of a popular brand. Then came the morning newspaper, reporting that farmers across the country were suffering huge losses due to adulterated and poor-quality seeds, so widespread that even agricultural officials could no longer guarantee quality.
Stepping outside, a familiar shopkeeper handed him underweight goods, yet charged the full price. At the rice market, he faced an even bigger contradiction. According to the World Bank, global rice prices have fallen by 31% in 2025 and may decline by another 1% in 2026. Yet, despite this global trend, rice prices in Bangladesh continue to rise. On his way back home, he watched a group of burn victims being rushed to the hospital after a gas cylinder explosion, another predictable disaster caused by substandard, unregulated products.
At home, an even bigger shock awaited him. His own bank could no longer return depositors' money. Feeling unwell from the day's distress, he took medicine he had purchased earlier, only to discover that it had expired long ago. As his condition worsened, he was taken to a hospital, where a new nightmare awaited him. He needed an emergency blood transfusion, but tests found that some blood bags on the market were mixed with adulterated saline.
His son flew home urgently from abroad. But upon landing, he found his luggage broken open, several belongings stolen, a painful reminder that the culture of deception runs deep into the country's institutions.
We live in an environment trapped in a cycle of fraud, reminiscent of the "vicious cycle of poverty" from our eighth-grade textbooks. In that economic model, low income leads to poor nutrition, which lowers productivity, which in turn further depresses income, a self-reinforcing loop. Fraud today operates on an identical, self-sustaining principle. The more people cheat, the more normalized deception becomes. And the more normalized it becomes, the faster it spreads.
At the heart of this cycle, one element remains constant: the fraudster class. Regardless of the national economy's state, this group consistently secures its profit. For them, cheating has evolved into a parallel profession, one that is easier, faster, and far more lucrative than honest work.
Large-scale scandals dominate national headlines. In the Hallmark-Sonali Bank scam alone, Tk 3,547 crore was illegally disbursed; Hallmark withdrew Tk 2,686 crore, yet only Tk 567 crore has been recovered. Scam-hit banks still account for 37% of the country's total non-performing loans.
Digital commerce reflects a similar picture.Since 2016, the Directorate of National Consumer Rights Protection has received 19,304 complaints against e-commerce platforms. A 2023 report listed 19,623 unresolved complaints worth Tk 600 crore-10,978 against Evaly, 6,017 against E-Orange, and 2,157 against Alesha Mart. By 2024, barely 150 of Evaly's nearly 7,000 complaints were resolved.
Food adulteration in Bangladesh remains widespread. Studies from 1995-2011 show 40-54% of foods and BSTI's 2019 nationwide testing (covering 406 food product samples across 27 categories)revealed 52 substandard/adulterated products, triggering a court order and a recall by the regulatory authorities, including staples like oils, spices, and sweetmeats, were adulterated, posing serious public health risks and challenging consumer rights.
When the interim government took charge after last year's July uprising, the banking sector was already crippled by dollar shortages, collapsing reserves, and liquidity crises across dozens of banks. Inflation had surged to 10.49% as the dollar spiraled. Over the following year, Bangladesh Bank's corrective measures began stabilizing the economy: the interbank dollar rate fell from Tk 128 to Tk 120, reserves rose from $18.61 billion to nearly $25 billion, and inflation eased to 8.55%, with a target of below 5% by March.
During this period, sweeping banking reforms were launched. Bangladesh Bank amended the Bank Company Act, introduced the Banking Resolution Act to restructure weak banks, modernized loan classification, and revised the Bangladesh Bank Order to curb political interference. Governordescribed past corruption as "unimaginable," estimating real NPLs exceed 30%, far above the official 9%.
Priorities now include rescuing 12-13 plundered banks and protecting depositors. New rules require overdue loans to be classified within three months. Banks with poor governance face mergers, while those with 70%-95% NPLs may be temporarily nationalized before re-privatization. Reforms also limit family members on bank boards to four, mandate 50% independent directors, and strengthen loan recovery laws so defaulters cannot exploit stay orders.
Inflation control remains the top goal, overseen by a depoliticized advisory committee. On 14 May 2025, Bangladesh Bank adopted a market-based exchange rate under IMF conditions, stabilizing the currency market, boosting monthly remittances to $3 billion, reducing hundi transactions, and helping rebuild reserves. The policy rate was raised from 8.5% to 10%. Since August 2024, boards of 14 banks have been restructured, and five Islamic banks with 60%-90% NPLs are set for merger. The new Banking Resolution Ordinance includes mechanisms for mergers, liquidation, and personal liability for misappropriation.
Yet asset recovery remains weak. Nine months after forming a task force, Bangladesh has not prepared a single internationally acceptable case, hindered by poor coordination and limited expertise. Governor estimates $17-20 billion was laundered, about half of total NPLs. Some assets have been traced or frozen, but full recovery may take four to five years through lengthy legal processes.
Beyond these headline scandals lies a broader, entrenched ecosystem of fraud. It includes political falsehoods, leaked exam and IELTS questions, adulterated seeds harming farmers, job scams exploiting youth, widespread food adulteration, weight manipulation, blood bags diluted with saline, expired medicines and cosmetics, old electronics sold as new, and airport luggage theft.
From fruit to gas cylinders, from hospitals to airports, fraud has evolved into a parallel economy. Entire markets now operate solely around adulterated and counterfeit products, sustained by syndicates, brokers, and local networks.
The tragic truth is that for many, fraud has become a profession, a shortcut to quick success. As long as dishonesty remains more profitable than integrity, the cycle will continue.
Fraud has seeped into our national habits. Breaking this pattern requires more than laws: it demands courage, consistent public pressure, and a fundamental overhaul of accountability systems. Until then, the fraudster class will thrive, while ordinary citizens bear the cost.
The writer is a researcher
