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Data scraping: the cyclone in China’s cybersecurity enforcement storm

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Jihong Chen
Zhong Lun, Beijing
chenjihong@zhonglun.com

Yun Luo
Zhong Lun, Beijing
luoyun@zhonglun.com

 

In early September, the enforcement authority initiated an investigation into several tech companies which provide data source to cash loan businesses. Such tech companies include Scorpion Tech and Xinyan Tech and the managers of the companies involved were arrested for investigation by the police. To date, a number of well-known data risk control companies, including Scorpion, Xinyan, Tianji, Youdun, Juxinli and Baiqishi have proactively decided or been asked by the authority to stop data scraping related businesses. Details about the risk of data scraping and compliance suggestions are discussed in our article.[1]

These enforcement activities relating to data scraping are not an abrupt whirlwind from nowhere. Regulatory agencies in the finance sector, including the Banking Regulatory Commission, the Office of the Special Rectification of Internet Financial Risks and the Office of the Special Rectification of P2P Network Loan Risk, have for a long time, been involved in tracing data sources of set-up loans and activities of collecting delinquent loans with violence and threats. The Office of the Special Rectification of Internet Financial Risks released its ‘Notice on Strengthening the Construction of Credit Information System in P2P Online Loan’ on 4 September 2019.

Although the enforcement primarily targeted data companies involved in data scraping activities in the Fintech sector, the enforcement authorities appear to be about to launch a new round of investigation and governance into the chaos in the Big Data sector in the near future.