Briefing: WeChat shuts more than 2,500 accounts for illegal loan activity

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关于打击微信个人非法信贷贷类行为的公告 – WeChat Security Center

What happened: China’s most used messaging app, WeChat, has shut down over 2,500 user accounts and more than 1,000 group chats since the beginning of the year over illegal credit and loan activities, according to an announcement posted on the official account of WeChat Security Center.

Why it’s important: The move is a response to the recent complaints from WeChat users about increasingly prevalent illegal lending behavior, and is part of a wider crackdown on illicit activities in the messaging app. Earlier this month, WeChat made a similar announcement announcing its progress on the sale of illegal and contraband products. Online lending has experienced rapid growth in China in recent years, but the sector is rife with fraud and illegal activities, largely due to a lack of oversight. WeChat, which has become a hotbed for fraud, has been trying to curb such behaviors especially as authorities tighten rules on online lending.