Mumbai: 10 Chinese nationals involved in international loan app scam running into several hundred crore rupees

Cyber police officials of the Mumbai Crime Branch, who busted an international loan app fraud racket, said at least ten Chinese nationals are involved in the crime and are beneficiaries of the money siphoned out of India using cryptocurrency.

The cyber police, which has arrested 14 accused from across India, said the accused were running the fraud since 2018, the number of victims could be more than 1,000 and the total money stolen could run into several hundred crore of rupees.

Addressing a press conference on Friday, Suhas Warke, Joint Commissioner (Crime), Mumbai Police, said, “The accused had opened over 360 bank accounts and more than 200 shell companies to siphon the ill-gotten money. Over 50 crypto currency wallet accounts have been used to transfer the money.”

“We have frozen several bank accounts and recovered Rs 14 crore. Another 2.17 lakh USDT was found in cryptocurrency wallets. We have seized 39 phones, 211 SIM cards, 19 laptops ad other electronic items that were used to commit the crime,” said Hemraj Singh Rajput, Deputy commissioner of Police (cyber).

The police said the accused uploaded the digital loan apps on Google Playstore or sent them directly to victims by text or WhatsApp messages. They were using at least 37



fraudulent loan apps and another 200 loan apps are under scanner.

The accused used to take access to personal details like images, contact list of the victim while lending few thousand rupees and later extorted much more money than the loan amount by morphing their photos with pornographic images and sending it to everyone in their contact list. They also called up the loanees as well as their family and friends and abused them.

The Crime Branch’s cyber police started investigating the case after a loanee died by suicide in Malad in May 2022 after harassment by “loan recovery agents”. After investigations, which lasted for two months, the police learned that the masterminds, who are said to be Chinese nationals, had floated shell companies with Indians as directors of these companies. The accused also hired younths who were in need of jobs.

“Every person had a different role. A particular group made phone calls and offered loans. Another group ensured the loans are given out and a third group would call the loanees to remind them about repayment. A fourth group then sexually harassed the victims and extorted money…” said a cyber police officer, who is part of a team of 22 officers and 12 constables from the five cyber police stations in Mumbai.