Fake IDRA circulars leave insurers, customers confused
IDRA is preparing to file a GD over the misuse of its name, while BSEC says it is monitoring the issue for any suspicious trading linked to the fake documents.
Insurance companies, customers and investors are facing confusion over fake circulars being circulated on social media using the name of the Insurance Development and Regulatory Authority (IDRA).
The issue has also raised concerns in the stock market, as 58 insurance companies regulated by IDRA are listed there.
Recently, IDRA identified a circular circulated on social media in its name as "completely fake, baseless and untrue". The regulator said it had neither issued the circular nor had any involvement with the document.
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The regulator is also preparing to file a general diary (GD) with Motijheel Police Station over the misuse of its name, according to sources familiar with the matter.
Another fake circular was recently circulated claiming that several non-life insurance companies had submitted an application to IDRA. However, no such application was submitted to the regulator, and IDRA had issued no instruction or circular on the matter.
The circulation of fake documents resembling official regulatory notices is creating confusion among insurers and their customers. It could also lead investors to form incorrect perceptions about listed insurance companies based on false information.
IDRA urged media professionals, stakeholders and the public to verify any circular or regulatory instruction through its official website, social media platforms or directly with the authority before publishing or circulating it.
The regulator said such misleading information could create public confusion and disrupt normal operations in the insurance sector.
Industry stakeholders said the impact of fake regulatory instructions could extend beyond individual companies or customers. For listed insurers, false information could also influence investment decisions.
As images of documents can spread rapidly on social media, fake information may reach companies, customers and investors before its authenticity is checked.
Meanwhile, the process of filing the GD at Motijheel Police Station is underway. The move is expected to help identify the source of the fake documents and those involved in circulating them.
BSEC spokesperson Abul Kalam told TBS that the commission was monitoring the issue. If it notices any abnormal rise in insurance companies' share prices or suspicious transactions linked to the fake circulars, the commission will look into the matter.
