Shillong, October 20: Cybersecurity researchers have uncovered a troubling trend of Chinese scammers using illegal instant loan apps to deceive thousands of victims in India with enticing offers of substantial loans and simple repayment terms, as per a new report.
As per IANS, these scammers employ fraudulent promises, extracting personal information and fees from victims, only to vanish afterwards. CloudSEK, a cybersecurity company, disclosed that these scammers have been eluding law enforcement actions by utilizing Chinese payment gateways and relying on Indian money mules.
Sparsh Kulshrestha, Senior Security Analyst at CloudSEK, noted, “A notable trend we’ve observed is scammers exploiting Chinese payment gateways due to their relative ease of use and limited regulatory scrutiny. These gateways offer a convenient bridge to funnel funds outside India, leveraging sophisticated techniques that blur jurisdictional lines, making it challenging to track and intercept the money trail.”
The investigation into this matter commenced on September 8 after researchers detected cybercriminals promoting a malicious app impersonating a prominent bank headquartered in Tamil Nadu, reportedly with a revenue of $23 million. From July to September, these cybercriminals amassed approximately Rs 37 lakh by posing as a bank through deceptive Chinese payment gateways.
The report identified more than 55 harmful Android apps that had been distributed through various channels. Researchers identified over 15 payment gateways run by Chinese individuals who were part of this fraudulent scheme.
Chinese individuals were found to be operating these deceptive payment gateways in multiple countries, including Indonesia, Malaysia, South Africa, Mexico, Brazil, Turkey, Vietnam, the Philippines, and Colombia.
The Chinese scammers’ modus operandi involves creating fraudulent instant loan apps, promoting illegal apps, soliciting personal information and processing fees, and subsequently disappearing after receiving payment.
Researchers are urging all stakeholders, including financial institutions, regulatory authorities, and law enforcement agencies, to remain vigilant and collaborate to combat this growing threat to India’s digital payment ecosystem.