Beijing Financial Supervision Bureau: Don't Click on This Type of "Debt Collection SMS" Under Any Circumstances!

Recently, the Beijing Financial Regulatory Bureau issued two risk alerts, warning consumers to beware of “loan collection” text message scams and to pay attention to credit card cancellation risks.

Prevent “Loan Collection” Text Message Scams

Currently, some criminals impersonate legitimate financial institutions to send false “loan collection” messages, endangering the financial safety of consumers. The Beijing Financial Regulatory Bureau reminds consumers to stay vigilant, verify the authenticity of debts, not to trust or blindly transfer money, and to avoid panic and confusion.

There are four common traps in “loan collection” scams.

Trap Two: Fake collection threats to force transfers. Criminals impersonate loan collection staff from lending institutions, using scare tactics such as “interest penalties doubled,” “listed as untrustworthy,” “door-to-door collection,” “affecting children’s school admission,” or “being sued,” to intimidate consumers. They falsely claim that immediate transfer of funds is needed to reduce penalties or remove overdue records, trick consumers into transferring money to private accounts, then disappear, leaving the consumer’s overdue issues unresolved.

Trap Three: Fake negotiations to deceive trust. Criminals claim to represent banks for “debt restructuring” or “interest suspension” negotiations, gaining consumers’ trust before demanding high “service fees,” “consultation fees,” or “material fees.” They promise to complete the process before charging, then disappear after receiving the fees.

Trap Four: Malicious information theft. Messages claiming to “verify identity” or “confirm repayment intent” lure consumers into replying with sensitive information such as ID numbers, home addresses, or workplaces, or calling fake customer service numbers. Criminals use this information for targeted scams or sell it, leading to more harassment calls and potential risks, with personal privacy at risk.

In response to fake “loan collection” messages, the Beijing Financial Regulatory Bureau reminds consumers to verify channels, avoid clicking links, and be cautious of scams. Check credit reports, stay calm, and protect privacy and security. First, verify channels are “legitimate.” After receiving collection messages, do not click links or call numbers directly. Instead, contact the bank through official customer service, official apps, or physical branches to verify the debt and the collector’s identity. Second, keep transactions “clear.” Follow the “three no’s”: do not transfer to personal accounts, do not scan unknown QR codes, and do not disclose SMS verification codes. All repayments should be made via official apps or to the designated corporate accounts, keeping proof of payment. Third, protect personal information. Avoid clicking unfamiliar links to prevent malware or phishing sites. Regularly check your credit report to understand your debt status and prevent scammers from exploiting information asymmetry.

Attention to Credit Card Cancellation Channels

Recently, some consumers have reported difficulties in the credit card cancellation process.

To effectively protect consumers’ legal rights and interests, guide proper credit card cancellation procedures, and prevent account risks, fee disputes, and credit issues, the Beijing Financial Regulatory Bureau reminds consumers to pay attention to credit card cancellation channels. Different financial institutions offer various methods for cancellation, so consumers should confirm the supported options by calling customer service in advance. Currently, channels include cancellation via phone customer service, mobile banking, online banking, or in-branch services.

Additionally, consumers should settle all outstanding bills, handle overpayments and points, and confirm automatic payment cancellations before proceeding. Credit card cancellations must be done through the issuing bank’s official channels, avoiding third-party or unofficial links/phone calls. After submitting a cancellation request, keep records of the application, customer service interactions, and SMS receipts to prevent future disputes. Some banks set a “pre-cancellation period”; after it expires, contact customer service again to confirm the account is officially closed. After cancellation, cut up the card’s chip or magnetic strip to prevent information leaks.

China Banking and Insurance Journal Reporter Tan Lezhi

China Banking and Insurance Journal Editor Xu Ning