XHelper is a malicious Android app that has been found to be the axis of a global money laundering network. It is used by Chinese cybercriminals to recruit and manage money mules in India, who are then used to transfer funds acquired through various scams, such as loan scams, e-commerce scams, illegal gambling apps, etc.
How does XHelper work?
XHelper is distributed through websites posing as legitimate businesses under the guise of “Money Transfer Business”. The app functions as a central hub for money mules, streamlining illegal transactions by simplifying payout and collection.
Money mules are individuals who receive and transfer funds acquired through fraudulent activities. They are often unaware of the origin and destination of the money they handle, and are lured by the promise of commissions and rewards.
XHelper employs a time-sensitive approach to ensure the swift transfer of funds to pre-designated accounts within strict timeframes. The app also includes many complex features to automate money laundering, such as QR code scanning, OTP verification, transaction history, etc.
How big is the network?
According to a report by CloudSEK, a cybersecurity firm that alerted CERT-In, RBI, and other agencies about the app, XHelper has 37 thousand active users on the platform, who linked 16 thousand bank accounts. The app processed $1.9 million daily, with an average transfer size of $270 and more than 7000 daily transfers.
The money mule role is pivotal for successful money laundering, as it adds a layer of complexity for threat actors who convert the funds into cryptocurrencies. The scheme exploited a critical loophole within India’s banking infrastructure, which enabled Chinese cybercriminals to orchestrate a large-scale money laundering scheme targeting Indian citizens.
How to avoid XHelper and similar scams?
XHelper is not an isolated incident. CloudSEK’s investigations have revealed a growing ecosystem of similar applications facilitating money laundering across various scams. Therefore, it is important to be vigilant and cautious when dealing with online transactions, especially from unknown sources.
Some of the signs that may indicate a potential scam are:
- Requests to transfer money quickly or urgently
- Offers of high commissions or rewards for little work
- Lack of transparency or information about the sender or receiver of the funds
- Inconsistencies or errors in the communication or transaction details
- Pressure or threats to comply with the instructions
If you encounter any of these signs, do not respond or click on any links. Report the incident to the relevant authorities and your bank. Do not download any apps from untrusted sources or websites. Always verify the identity and legitimacy of the business or person you are dealing with.
XHelper is a silent scam network that poses a significant risk to the Indian banking ecosystem and its customers. By being aware and alert, you can protect yourself and your money from falling prey to such frauds.
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