Naked Loan Service: Selfie as collateral, a trap for students

China: A new type of crime surfaced wherein loans are given to students after receiving naked selfie as collaterals. Students are getting trapped into this new loan service.

According to the report published in The Hans India, Chinese e-commerce startups are offering loans to the poor Chinese students who face difficulties in meeting daily expenses, college fees. These startups are demanding naked Selfie from the students as collateral. Later, they are resorting to blackmail.

If students fail to repay loan amount, these lenders are using their selfies to threaten them.

It is also reported that lenders are charging huge interest on the amount. They are also asking more nude pictures.

This new modus operandi has reached to such extent that Chinese financial regulators decided to take stern action against all unlicensed micro-lenders.