Explicit content featuring over 160 Chinese women, originally provided as collateral for financial loans, surfaced online in a disconcerting data breach from the lending service Jiedaibao. This data, stolen from Jiedaibao and totaling over 10GB, was not the result of individuals seeking revenge on former partners but is connected to an unsettling form of loan security.
Founded in 2015, Jiedaibao allows lenders to operate anonymously while mandating that borrowers reveal their true identities. Interestingly, the service was built to cater to those who struggle to access traditional loan channels such as banks. Its flexible system allows for loan amounts and interest rates to be customized according to the needs of its users, according to Japan Times.
However, the model hides an insidious aspect. Female borrowers are asked to provide explicit images of themselves, which serve as collateral and are known as “nude loans.” If a borrower fails to repay the loan, they are threatened with having these photos sent to their family and friends. The interest rate attached to these loans is reported to be a shocking 30 percent a week, as stated by Global Times.
The leaked nude photos were initially posted on Alipay’s new social feature Circles, a platform that only allows female users to post pictures. Male users reportedly posted inappropriate comments on these images.
Comprehensive data statistics show China holding nearly 2,600 platforms operating as Peer-to-Peer (P2P) businesses, with transactions from last year valued at an estimated $150 billion. The Chinese government, however, is maintaining a cautious stance towards this rising P2P lending trend. In August, regulations were tightened, setting a borrowing limit of 1 million yuan for individuals to effectively manage potential risks.
This incident once again brings forth the escalating issue of data security and the protection of user information, a challenge previously faced by major online platforms, including Yahoo, which had over 500 million user details stolen in 2014.
In the ever-evolving digital world, instances such as these serve as a stern reminder of the dual-edged nature of technological advancements. As humanity reaps the benefits of sleek communication and exchange platforms, it simultaneously grapples with the threats these advancements pose to personal security and privacy.