Authorities dismantled an online loan sharking ring that used iCloud accounts as collateral.
Authorities have announced that they have initiated legal proceedings, charged and detained 13 individuals (from various provinces and cities across the country) for engaging in usurious lending practices online in civil transactions.
The indictment decisions have been approved by the People's Procuratorate of Bac Giang province. The network provided loans totaling 70 billion VND to over 30,000 borrowers, with interest rates ranging from 319% to 629% per year, 15.9 to 31.4 times higher than the maximum permitted interest rate in civil transactions.
Previously, through monitoring the local area and cyberspace, the Cyber Security and High-Tech Crime Prevention Department of the Bac Giang Provincial Police discovered a "loan sharking" ring.
Notably, borrowers only need to provide their iPhone as collateral by offering their iCloud account. The group requires borrowers to log out of their own iCloud account and then log in to the iCloud account provided by the perpetrators so that the perpetrators can manage the borrower's information and the phone. Borrowers can borrow from a few million to tens of millions of VND, depending on the value of the iPhone.
In addition, borrowers must provide images of their citizen identity card, portrait photo, phone number, contact list, permanent address, occupation, workplace address, current address, full names of parents, spouse, Facebook names of relatives, bank account number, etc.
After verifying the information for discrepancies, the loan administrator disburses the loan into the borrower's bank account after deducting interest for approximately 3-10 days, with a processing fee of 5% of the loan amount. Subsequently, the borrower must repay the principal and interest daily by transferring money to the designated bank accounts.
If the borrower fails to repay the loan, the perpetrator will lock the borrower's iCloud account, rendering the borrower unable to use the phone. The borrower will then be forced to pay to unlock the phone. Once the borrower repays the loan, the perpetrator will log out of the logged-in iCloud account, at which point the borrower can use their phone normally.
In response to this situation, Colonel Nguyen Quoc Toan, Director of the Bac Giang Provincial Police, promptly directed the establishment of a special task force to combat the crime.
On June 24th, a special task force comprising 60 officers and soldiers from the Cyber Security and High-Tech Crime Prevention Department of the Bac Giang City Police and several related professional units of the Provincial Police conducted surprise urgent searches at three locations: an apartment in Building CT10A, Nam Trung Yen Urban Area, Cau Giay District, Hanoi; an apartment in Building CT10C, Kim Van Kim Lu Urban Area, Dai Kim Ward, Hoang Mai District, Hanoi; and a location in Hamlet 3, Dong Son Commune, Tam Diep City, Ninh Binh Province.
The Bac Giang Provincial Police force seized numerous related devices, items, and documents, including: 4 computer sets, 158 iPhones of various models, 5 internet broadcasting devices, and many other related items and documents.
Based on the documents and evidence, on July 5th, the Investigation Police Department of Bac Giang City Police initiated a criminal case, charged the suspects, and issued a temporary detention order against the aforementioned individuals.
Initially, the Bac Giang City Police Investigation Agency determined that this was a large-scale, organized "loan sharking" ring operating online, lending at exorbitant interest rates across the country. The ring had a clear division of roles and responsibilities, including the ringleader who organized the operation, provided the money, and supplied the equipment for the entire group to operate.
Team leaders, who directly manage staff, assess customers, and disburse loans, receive a salary of approximately 12 million VND per month. Technical support staff, who communicate with collaborators, assess customers, guide device installation, manage debt reminders, and collect debts, receive a salary of approximately 8 million VND per month. Collaborators, who post loan advertisements on social media platforms, find borrowers, and collect borrower information, receive a profit of 25% to 30% of the successful loan.
The ringleaders of the loan sharking groups in this network include: Do Thanh Ton (born in 2000, residing in Dong Son commune, Tam Diep city, Ninh Binh province); Vu Van Phong (born in 2004, residing in Hong Phong commune, Thanh Mien district, Hai Duong province); Dao Van Thai (born in 1993, residing in Vu Ban commune, Dan Hung district, Phu Tho province); and Nguyen Ngoc Linh (born in 1992, residing in Phu Loc commune, Nho Quan district, Ninh Binh province).
Major Chu Van Hieu, Deputy Head of the Cyber Security and High-Tech Crime Prevention Department of the Bac Giang Provincial Police, stated: “Borrowing money through iCloud accounts carries many risks. Borrowers are at high risk of having their personal data and information collected. Using iCloud as collateral for a loan also means the borrower has granted access to their iPhone, including photos, videos, and contacts. When borrowers fail to repay, debt collectors will remind them of the debt, repeatedly call and text their relatives, and eventually block their iPhone…”
The Criminal Investigation Department of the Bac Giang City Police is continuing to investigate and expand the case.
