Predatory Lending Apps From China Are Wreaking Havoc Across Asia

The trouble often starts with social media ads. Get a $500 personal loan in 20 minutes, the ads on Facebook or Instagram say. No documentation needed, just download this app. When prospective borrowers do so, they hand over access to their phone’s contact lists and photo rolls. As soon as the next day, friends, family members and employers begin receiving emails, saying the victim identified them as guarantors and they’re on the hook for large sums that need to be paid immediately.

If that doesn’t work, the app’s operators can amp up the pressure by distributing embarrassing photographs. Some victims ...