China-Linked Loan App Scams Estimated to Cause Over $3 Billion in Global Losses

INIndia|

A crackdown on China-linked loan app scams has revealed extensive operations impacting numerous countries, including India, Nigeria, and the Philippines. The Enforcement Directorate (ED) reported that two individuals were arrested in India for managing a Chinese loan app scam that involved over 500 illicit bank accounts, amassing around ₹719 crores (approximately $86 million).

According to ED sources, these scams rely on data harvesting, extortion, and cryptocurrency money laundering, targeting individuals through deceptive practices such as blackmail. The global financial impact of these scams is estimated to exceed $3 billion since 2020. The China Communist Party's United Front Work Department and the Ministry of State Security have been implicated in facilitating these operations, which utilize shell companies and advanced cyber techniques to infiltrate foreign economies.

The ED's investigation identified a network facilitating cryptocurrency transfers to overseas wallets, with an alarming trend of financial ruin and suicides reported among victims in India. The scope and complexity of these schemes underscore the urgent need for international collaboration to combat cybercrime.

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