Don’t agree when an acquaintance asks you to “help by doing a facial scan or acting as a witness” to secure a loan, or to read out a verification code — this is known as “AB loan” fraud. In this scheme, you are the borrower, not a guarantor

There’s no direct monetary cost. The real difficulty lies in politely refusing relatives or friends on the spot. Even if they insist “it’s just a formality” or “you won’t bear any responsibility,” you must still decline. Never hand over your phone, ID card, or bank card to intermediaries, nor follow their instructions to perform facial scans or sign documents. Keep verification codes strictly for your own use — never read them out to acquaintances.

In 2022, the Fujian Regulatory Bureau of the China Banking and Insurance Regulatory Commission issued a warning about this exact scheme. Client A lacked sufficient creditworthiness to qualify for a loan, so an intermediary suggested involving Client B — who had better financial standing — as a guarantor. In reality, the intermediary used B’s personal information to apply for the loan, which was then disbursed to A. Official documents stated that “Client B was effectively the borrower,” yet B remained unaware until receiving collection notices from the bank. A 2024 advisory from Shandong’s regulatory authority revealed that intermediaries often assure potential borrowers like B that “they bear no responsibility whatsoever.” They even coach B on how to respond to bank pre-loan inquiries, ultimately securing the loan in B’s name. In a 2024 case adjudicated by Shanghai’s Putuo District Court, a loan officer used B’s phone to download a banking app and apply for credit in her name. After funds reached B’s account, she transferred them to A, who subsequently paid over 80,000 yuan in processing fees. Eight members of the scam ring were convicted of contract fraud, receiving sentences ranging from 10 months to 4 years. Yet this conviction does not absolve B of her debt obligations. Article 149 of the Civil Code stipulates that a contract may only be rescinded if the other party “knew or should have known” of the fraud — which does not apply here, as banks remain unaware of such schemes. Under Article 152, rescission requests must be filed within one year of discovering the deception. Borrowers remain bound by repayment terms per Article 675, and contracts legally bind only signatories (Article 465). Transferring debt obligations to another party requires explicit bank consent (Article 551). Consequently, any written assurances from A hold no sway over the bank. Victims must pursue legal action against A to recover funds. Courts routinely hold individuals liable even when they blindly comply with instructions: in a 2025 case from Neijiang, an elderly woman named Jiang agreed to co-sign a loan application for another individual, Jiang, after being misled into believing she was merely a witness. Though she performed a facial scan without reviewing terms, courts ruled she “should have foreseen the legal implications,” ordering joint repayment of over 60,000 yuan in outstanding principal. The Electronic Signature Law affirms that “reliable electronic signatures hold equal legal weight to handwritten signatures or seals.” Meanwhile, anti-fraud legislation explicitly prohibits anyone from “providing real-name verification assistance,” imposing fines or detention for violations. Standard first-instance trials conclude within six months, with extensions permitted. Legal fees are not covered by statutory court costs and must be borne personally.

国家金融监督管理总局福建监管局（原福建银保监局） (2022). 关于防范不良贷款中介新型套路的风险提示（2022 年 9 月 14 日）. https://www.nfra.gov.cn/branch/fujian/view/pages/common/ItemDetail.html?docId=1072844&itemId=1104&generaltype=0；国家金融监督管理总局山东监管局 (2024). 风险提示：警惕非法贷款中介AB贷风险（2024 年 3 月 14 日）. https://www.nfra.gov.cn/branch/shandong/view/pages/common/ItemDetail.html?docId=1154326&itemId=1269&generaltype=0；上海市普陀区人民法院 (2024). 以案释法：征信不好仍可办理大额贷款？小心「AB贷」陷阱. https://www.shpt.gov.cn/fyzx-fy/20240920/953017.html（上海市普陀区人民政府网转载）；唐逸飞 (2025). 有必要对「助贷中介套路欺诈」予以刑事规制. 检察日报理论版. https://www.spp.gov.cn/spp/llyj/202506/t20250607_697711.shtml（最高人民检察院官网）；全国人大 (2020). 民法典（第一百四十九、一百五十二、四百六十五、五百五十一、六百七十五条）. https://www.spp.gov.cn/spp/fl/202006/t20200602_463888.shtml；全国人大常委会 (2023 修正). 民事诉讼法（第一百五十二条）. https://fgw.sh.gov.cn/ys-syjf-zc-2.4.1-h5/20240408/073febdb2b04464390546232d4089f51.html（上海市发展改革委转载）；国务院 (2006). 诉讼费用交纳办法（国务院令第 481 号，第六条）. https://www.gov.cn/zhengce/zhengceku/2008-03/28/content_6929.htm；四川长安网（中共四川省委政法委员会主办，来源四川法治报）(2025). 一次「刷脸」让她背上数万元贷款 法院：当事人应当预见人脸识别的重要性及法律后果（2025 年 9 月 23 日）. https://www.sichuanpeace.gov.cn/azsf/20250923/2992615.html；山西省忻州市中级人民法院（转载人民法院报）(2021). 一女子「被刷脸」办卡贷款后被起诉还钱（2021 年 8 月 19 日）. https://sxxzzy.shanxify.gov.cn/article/detail/2021/08/id/6215123.shtml；全国人大常委会 (2019). 电子签名法（2019 年修正，第三、十三、十四、十五条）. https://flk.npc.gov.cn/detail?id=ff8080816f135f46016f2163e4261aa1；全国人大常委会 (2022). 反电信网络诈骗法（第三十一、四十四条）. https://www.spp.gov.cn/spp/fl/202209/t20220902_575631.shtml

Primarily, you stand to benefit from avoiding this trap — the person approaching you, labeled “A,” is often a family member or close friend. A prosecutor from Shanghai’s Pudong District observed that individuals like “B” frequently comply despite recognizing they’re acting as borrowers, ultimately becoming targets of bank collection efforts. If genuinely wishing to assist, first clarify your legal role in any contract; if it’s a loan agreement, abstain from signing. Those willing to guarantee another’s obligations should execute a separate guarantee contract as stipulated in Section 18 (“Acting as a Guarantor”). Should you inadvertently become a borrower, immediately file a police report, then contact your bank via official channels to explain the situation, preserving all communication and transaction records. To monitor personal debt levels, consult your credit report per Section 9 (“Checking Your Credit Report”). During bank pre-loan interviews, avoid reciting scripted responses provided by intermediaries — providing false information may incur personal liability, as detailed in Section 9.6 (“Loan Packaging Schemes”). Note that facial scans and electronic confirmations legally equate to handwritten signatures (Section 17: “Read Documents Before Signing”). Courts do not uniformly enforce repayment duties: in a 2021 ruling, Guangzhou Internet Court dismissed a bank’s claim against a woman whose ID had been stolen; lacking proof of her voluntary facial scan, the bank lost its case. Thus, promptly reporting stolen IDs and retaining police receipts is crucial. When institutions demand facial scans, you may request alternative verification methods — a separate matter addressed in Section 14.9 (“Facial Scans Are Not Mandatory”). Similar schemes involving unauthorized use of personal identities appear in Section 28 (“Nominal Legal Representatives”). Finally, never lend your phone or bank accounts, as emphasized in Section 8 (“Never Lend Your Bank Card”). This section includes illustrative cases and regulatory warnings but lacks aggregated statistics on fraud incidence rates or financial losses.