Chinese loan apps luring gullible into debt trap

Chinese loan app companies are trying out new ways to lure gullible into a debt trap. Police identified a few companies that are looking to set up call centres in Hyderabad. During an investigation conducted by the cybercrime police, crucial information about the fake companies' move to position themselves in major cities came to light.

Hyderabad: Chinese loan app companies are trying out new ways to lure the gullible into a debt trap. Police identified a few companies that are looking to set up call centres in Hyderabad. During an investigation conducted by the cybercrime police, crucial information about the counterfeit companies moving to position themselves in major cities came to light.

China-backed loan app companies are planning to set up call centres in the city. At present, Uttar Pradesh, Delhi, Mumbai and Rajasthan are hotspots for cybercrimes in the country. Even the rural youth here are making money off online scams. Of late, they have been shifting their base to escape increased police surveillance.

A recent cybercrime investigation led by Rachakonda police found that there are similar fraudulent gangs in Chennai and Coimbatore. Following the success of their schemes in those areas, they have extended their operations to Hyderabad, Vijayawada and Visakhapatnam. Recently, three Nepalis were arrested by the cybercrime police of Rachakonda. On investigation, it was identified that they have tried to set up a tele-calling centre in the city. The police are probing into the case based on the contacts found on the accused phones.

Investment and loan frauds are shooting up, thanks to the mushrooming China-backed apps. These companies are hiring locals as agents to set up call centres, register fake companies and compel people into opening bank accounts. These agents are hired for Rs 12,000 to 15,000 a month and are paid commissions. The companies explain job responsibilities to the agents over Zoom conferences. The Chinese companies also provide forged documents required to open bank accounts. They plan ahead to empty the bank accounts before the victims could realise the trap. This money gets converted to cryptocurrency and being transferred to China.

In the hope of earning a lot of money in no time, many fall prey to such scams. The police urged people to steer clear of quick money schemes and report any suspicious activities to the cybercrime department.