Report Reveals Chinese Scammers Laundering Millions Through Exploiting Indian Loan Seekers
Cybersecurity researchers have found that Chinese scammers are using illegal payday loan apps to lure thousands of victims in India with false promises of substantial loans and easy repayments, a new report released on Friday said.
These scammers then disappear after collecting personal information and payments.
According to cybersecurity company CloudSEK, these fraudsters use Chinese payment gateways and Indian money mules to evade law enforcement.
“A notable trend we have observed is fraudsters taking advantage of Chinese payment gateways due to their relative ease of use and limited regulatory oversight. These gateways provide a convenient bridge to move funds outside of India using sophisticated technologies that blur jurisdictional boundaries, making the money trail easy to track and intercept challenging,” said Sparsh Kulshrestha, Senior Security Analyst at CloudSEK.
The investigation, launched on September 8, began when investigators found cybercriminals promoting a malicious app that prominently posed as a Tamil Nadu-headquartered bank with reported revenue of $23 million.
Between July and September, cybercriminals collected around Rs 37,000 by impersonating a bank through fraudulent Chinese payment gateways.
According to the report, more than 55 malicious Android apps have been distributed through various channels.
Investigators identified more than 15 payment gateways operated by Chinese individuals involved in this fraudulent scheme.
According to the report, these fraudulent payment gateways are used by Chinese individuals in several countries including Indonesia, Malaysia, South Africa, Mexico, Brazil, Turkey, Vietnam, Philippines and Colombia.
Chinese scammers’ methods of operation include creating fake instant loan applications, promoting illegal applications, demanding personal information and processing payments, and disappearing after payment.
The researchers urged all stakeholders, including financial institutions, regulators and law enforcement agencies, to remain vigilant and work together to counter this growing threat to India’s digital payments ecosystem.
