Chinese fraudsters take cues from squid game to scam debtors Reuters

By Ryan Wu, Ethan Wang and Yukun Zhang

BEIJING (Reuters) – Fraudsters in China’s squid game are preying on cash-strapped people in the faltering economy with offers of prize money, debt restructuring and other schemes that aren’t always what they were promised.

Unlike the South Korean television series, which returns to the small screen for a second time on Thursday, Chinese players will not risk their lives if they lose if they take on the “self-control” challenges.

But the courts have found some participants in separate challenges — paying hundreds of dollars for days — following the rules set out in hopes of winning 1 million yuan ($140,000). And regulators are warning people about debt relief requests.

TikTok, as it is known in China, has grown in popularity this year as the world’s second-largest economy shrinks due to often-advertised isolation challenges. It grew at its weakest pace in more than a year in the three months to September, prompting policymakers to introduce new measures to boost household incomes, among other measures.

The lengthy rules in the tests include restrictions on bathroom breaks lasting no longer than 15 minutes and the alarm clock not being touched more than twice a day.

Many players are sued for violations caught on surveillance cameras when they don’t survive their first day.

In October, a court in the eastern province of Shandong ordered an organizer to refund 5,400 yuan ($740) of the player’s registration fee, saying the contract was unfair and “violated public order and morality.”

Sun was trying to earn 250,000 yuan by surviving a 30-day solitary ordeal with rules prohibiting smoking, using electronic devices, drinking alcohol and meeting people outside the classroom.

On the third day, tournament organizers said San covered his face with a pillow and violated the ban on players covering their faces.

The Cyberspace Administration of China, which oversees the country’s internet, and ByteDance, the owner of Duyin, did not respond to requests for comment from Reuters.

The National Financial Regulatory Authority (NFRA) on Tuesday warned people against falling for “debt brokers” who claim to help them fix their loans or improve their credit profile.

Advertising their services by phone, text, leaflets and social media, such intermediaries claim to be able to secure new loans or provide temporary funding, but the regulator warns that the services come with high fees.

Intermediaries charge up to 12 percent of the loan’s value in “service fees,” the state-backed National Business Daily reported.

Another scheme involves charging borrowers large fees ostensibly to repair their credit records, according to NFRA, which warns that borrowers’ personal information could also be leaked or sold.

China’s home loans reached 82.47 trillion yuan ($11.3 trillion) in November, central bank data showed.

($1 = 7.2988 renminbi)