Chinese loan apps scam: More than a sinister plot

 NEW DELHI: The Enforcement Directorate (ED), which is conducting a probe into the Chinese loan application scam case, has learned during its course of investigation that the apps’ creators had cheated a number of people during the COVID phase, which led to many challenges, including financial crisis and loss of jobs.

The Chinese loan apps offered microloans to millions of jobless people and then recovered the amount from them by blackmailing them on various pretexts.

A source involved in the probe said all this happened due to 'weaker' rules and regulations.

A number of women who had taken loans were threatened that their names and photos would be uploaded on porn sites if they did not repay with full interest along with the penalty amounts.

The accused had accessed the contact details of those who took loans and sent messages to their relatives, friends, and other known persons, portraying them as thieves.

It was also a tactic to make them take a loan from another Chinese loan app.

A few apps that were behind this were Money Box, Need Rupee, My Bank, Loan Gram, Coco Cash, Panda Rupee, and Cash Pot. These were controlled and managed by Chinese nationals based in Hong Kong and in other cities.

After investigation, the ED learned that the two main accused -- Qu Yang Peng and 'Mr. Lail' had visited India.

They took the help of some Indian nationals, and opened firms while the Indians had no idea about their malicious intent.

"During inquiries, it emerged that these entities are operated by Chinese persons. They used forged documents of Indians and made them dummy directors of those entities while generating proceeds of crime," the ED had earlier said.

As many as 18 FIRs were registered by the Cyber Crime Police Station in Bengaluru against numerous entities related to Chinese nationals.

The ED conducted its probe on the basis of these FIRs.

"The accused ran Chinese apps and used to make a WhatsApp group with the contact details of the victim. The women's contacts received objectionable messages. All the contacts of the victim were called by their agents, who would say that they were made guarantors by the loan-taker. This was the modus-operandi opted for by Chinese nationals to extort money from Indians," the source said. (IANS)

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