Police in China have arrested more than 40 people for fraudulent schemes that target iPhone users in the country, reports the South China Morning Post.
The scam convinces people to give up their personal Apple IDs in order to “obtain a loan.” The Post says that, in a typical example of how the scheme works, borrowers are asked to sign out of their Apple devices and log back in using an Apple ID provided by the lender. If borrowers fail to make repayments on time – usually at interest rates much higher than the market average – the lender threatens to block their device, call their contacts and divulge personal information.
In a recent crackdown, the police arrested nine groups of people involved in these rackets, covering 41 suspects across 21 provinces. The suspects had made loans to more than 20,000 people, involving 130 million yuan (US$18.3 million), according to the state-run China News Service.