China busts over 260 gangs for loan frauds

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BEIJING, July 10 (Xinhua) — Police across China have busted over 260 criminal gangs involved in “trap loan” frauds so far this year, arresting more than 1,270 suspects, according to the Ministry of Public Security (MPS) on Friday.

Over 1,410 criminal cases related to such frauds were cracked this year, with around one billion yuan (around 143 million U.S. dollars) seized.

Gangs committing “trap loan” frauds usually disguise illegal lending with so-called “private lending,” charging huge fees in the name of audit, management, service and other things, forcing victims into continuous “borrowing” to pay the rising “debt,” before resorting to violence to coerce borrowers to cough up more money or assets.

Such frauds not only infringe on victims’ legitimate rights, but also disrupt the financial order and severely damage social harmony and stability, the ministry said.

Police across the country will continue to take strong actions against such crimes, according to the MPS.

The ministry also called on the public to increase awareness of such “trap loan” frauds and apply for credit via formal financial institutions. Enditem

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