Cults were deemed as such for three main reasons.
For one, they did not belong to any legitimate Taoists or Buddhists sects, but were purely private associations.
For another, their teaching always started off as benevolent, persuading people to do good, stop drinking, abstain from sex, etc. But it then went sour to the point of defying all laws and regulations.
When a cult took in believers, it did not differentiate between the two sexes, for no one was to be exempted from the tribulation—which was why the members should devote themselves wholeheartedly to exchange for a "way out". Once the men and women were mixed together with little regulations, all sorts of vile practices were invented.