China Banking and Insurance Regulatory Commission warns consumers about “professional debt-bearer” loan fraud schemes

The China Banking and Insurance Regulatory Commission’s Financial Consumer Rights Protection Bureau issued a consumer alert on “professional debt-bearer” scams that entice individuals with promises of quick wealth and claims that loans taken out in their own name will not need to be repaid, urging the public to stay vigilant and avoid becoming involved. The alert describes common tactics including false marketing such as “high returns without repayment”, using forged employment and income documents and bank statements to obtain loans from banks for people who do not meet lending conditions, and then taking a large share of the proceeds while shifting all debt and risk to the borrower. It warns that participants remain legally liable for the full principal and interest and may face collection, penalty interest and litigation, as well as serious credit impairment that can restrict access to formal financial services and normal activities. It also highlights potential criminal exposure where individuals assist in falsifying materials or defrauding financial institutions, including risks linked to offences such as fraud, illegal fundraising, fraudulent loan procurement and money laundering. Consumers are advised to protect their personal credit, avoid informal “agency” services, safeguard personal information and original documents, and read contracts carefully before signing. The notice adds that China’s Ministry of Public Security and the financial regulator are conducting a joint crackdown on illegal “black and grey” criminal networks in the financial sector, and encourages the public to refuse suspicious approaches and report suspected activity to financial regulators or the police.