Chinese law enforcement has cracked down on fraudulent loan schemes targeting iPhone users according to a new report by South China Morning Post, where borrowers relinquish their Apple IDs to secure loans at exorbitant interest rates and risk compromising their personal data.
These “Apple ID loan” rackets operate by tricking borrowers into signing out of their Apple devices and logging back in with an ID provided by the lender. This grants the lender access to the borrower’s Apple services and potentially sensitive information. Failure to repay the loan, often at usurious interest rates exceeding 2,800% annually, can result in threats to lock the device, contact the borrower’s circle, and expose personal details.
Recent police action led to the arrest of 41 individuals across 21 provinces, dismantling nine criminal groups involved in these scams. Their activities impacted over 20,000 borrowers, with loan sums totaling 130 million yuan ($18.3 million). Disturbingly, some lenders reportedly used Apple CEO Tim Cook’s name to advertise their illegal services.
This isn’t the first time such schemes have surfaced. Chinese state media warned about similar “Apple ID loan” scams in 2019, highlighting the predatory nature of their exorbitant interest rates and short repayment periods. These tactics exploit individuals seeking quick financial solutions, often without requiring formal credit checks or collateral.
The allure of these loans, advertised as requiring “no need for loan collateral or credit reports,” stands in stark contrast to the reality of their exploitative terms. As China grapples with economic headwinds, banks have lowered average consumer loan interest rates to 3.41% in November 2023, offering a much more responsible alternative.
It’s important to do your research before taking out any loan, including those targeting iPhone users. Consider the risks and potential consequences involved, particularly when granting access to personal accounts like Apple IDs. Before making a decision, compare different options and ensure you understand all terms and conditions, including interest rates and repayment schedules, to make an informed choice.
