Enforcement Directorate Cracks Down on Fake Chinese Loan App Scam, Arrests Four Key Accused
The Enforcement Directorate (ED) has made a significant breakthrough in its investigation into the nationwide fake Chinese loan app scam by arresting four key individuals allegedly masterminding the fraudulent operations. The arrests, carried out by ED’s Kochi Zonal Office, mark a major step in curbing financial crimes linked to illegal digital lending platforms that have victimized thousands across India.
Who Are the Accused?
The four individuals arrested on January 30 have been identified as:
- Daniel Selvakumar – Director of Xoduz Solutions Pvt. Ltd. and operator of Tyrannus Technology Pvt. Ltd.
- Allen Samuel – Director of Aprikiwi Solutions Pvt. Ltd.
- Anto Paul Prakash – Proprietor of Global Expositions and Infomedia Solutions and Director of Sozo Technology Pvt. Ltd.
- Kathiravan Ravi – Director of Future Vision Media Solutions Pvt. Ltd.
These individuals are believed to have played a central role in running and facilitating fraudulent loan apps that exploited unsuspecting borrowers by luring them with quick loans and then trapping them in cycles of exorbitant interest rates, harassment, and blackmail.
The Modus Operandi of the Scam
According to ED, the accused used shell companies and digital platforms to operate fake loan apps with Chinese connections. These apps targeted financially vulnerable individuals, offering easy loans with minimal documentation. Once users borrowed money, they were subjected to aggressive recovery tactics, including unauthorized access to personal data, threats, and extortion. Many victims reported mental harassment, and some even resorted to extreme measures due to the pressure.
ED’s Investigation and Crackdown
The ED launched its investigation after multiple complaints surfaced regarding the fraudulent activities of these loan apps. Authorities traced the financial transactions and digital footprints, eventually leading them to the masterminds behind the scam.
During the investigation, officials discovered that the accused had links with foreign entities, including China-based operators, who provided the technical backend and infrastructure for these apps. The arrested individuals were not only running these operations in India but were also facilitating the illegal movement of funds to foreign accounts through cryptocurrency and other untraceable channels.
Impact of the Arrests and Future Actions
With the arrest of these four individuals, authorities expect to dismantle a significant portion of the fake loan app network. However, ED has indicated that the investigation is ongoing, and more arrests could follow as they dig deeper into the financial and operational aspects of the scam.
The crackdown serves as a warning to similar fraudulent platforms operating in the country. It also highlights the need for stronger regulations and public awareness regarding digital lending scams.
Public Caution Advised
Authorities have urged people to exercise caution while using digital lending apps and to verify the legitimacy of financial platforms before availing loans. The Reserve Bank of India (RBI) has also been working to regulate the digital lending space, ensuring that only authorized apps operate within legal frameworks.
As the investigation progresses, more details are expected to emerge, shedding light on the larger network behind these fraudulent loan apps and their international connections.
