Here's what led to Centre's crackdown on Chinese betting, loan apps

New Delhi: The ban imposed on around 230 Chinese apps - 138 betting apps and 94 loan lending apps - on "urgent" and "emergency" basis by the government came following a spate of fraud and data theft cases registered across the country involving these apps.

Take for example a Chandigarh police case involving Hugo loan app. Direct involvement from China and of Chinese nationals was found during the investigation into the case.

It was found that Hugo loan app was uploaded on the play store using the email address ‘irpwpmcz@gmail.com’ and details about it were sought from Google. It found that the app was registered in China internet protocol address used belonged to China and Singapore.

In most cases, victims receive a link through SMS and if the link is clicked Hugo load app was installed. At the time of installation, app sought access to mobile contacts and the gallery. If the victim allows it by mistake and tries to check the eligibility of a loan, an amount like Rs 3500 is shown but as in the case with Chandigarh police the victim did not apply for a loan and even uninstalled it.

But to their utter shock, despite not applying for a loan and uninstalling the app, victims start receiving threatening calls and nude pictures. Victims are threatened that their nude pictures would be sent to family members unless they pay money. In the Chandigarh case, the complainant even paid around Rs 5500 in two instalments but he continued to get threatening calls and finally approached the police. In all, 31 accused were arrested in the case including a Chinese national Wan Chengua.

The police found that one category of accused persons were basically recovery agents who called victims and the data of people who had installed instant loan apps like AK Loan, Hugo Loan, Cash Loan, One Hope, Cash Bee, OK Cash, Crazy Loan, Crazy Cash, Puppe Fanta, Paisa Loan, Crazy Rupee. 

The data was provided to recovery agents by the Chinese nationals through a web portal (jituloan.com) The portal was specially created by the Chinese bosses and recovery teams had been provided access through login. The Chinese bosses used to transfer money mostly through UPI following which blackmail starts through data accessed by the Chinese national while installing the app and applying for the loan.

The Chandigarh police identified three Chinese nationals by the name of Peter, Tray and Nicholas as the top bosses of the scam.

During the investigation, it was also found these short-term loans at exorbitant interest rates (with many hidden charges) are most offered to low-income group people or other vulnerable sections of society.

The lenders have access to contacts, locations, personal videos pictures stored in the gallery and it leads to blackmail and harassment.

The money extorted from victims was transacted through many bank accounts of shell companies and then finally using different channels like hawala, cryptocurrency telegraphic transfer found its way to China.