In recent years, with the development of society and the proliferation of electronic communication technologies, new types of telecommunications fraud schemes have continuously emerged, such as“number spoofing”,“online shopping refund fraud”, and“impersonation of public security, procuratorial, and judicial authorities”. The issue of telecommunications fraud has become increasingly severe, causing significant disruption to people's lives and work.

On September 2, 2022, the 36th Session of the Standing Committee of the 13th National People's Congress voted to adopt the Anti-Telecommunications and Online Fraud Law of the People's Republic of China, comprising seven chapters and 50 articles, including General Provisions, Telecommunications Governance, Financial Governance, Internet Governance, Comprehensive Measures, Legal Liability, and Supplementary Provisions, providing robust legal support for the fight against telecommunications and online fraud. This Law came into effect on December 1, 2022.

I. What is Telecommunications and Online Fraud?

With the development of society and the proliferation of electronic communication technologies, telecommunications and online fraud has become increasingly rampant. Telecommunications and online fraud is a criminal act in which perpetrators, with the intent of illegal possession, utilize telecommunications and network technologies (such as telephone, internet, and text messages) to fabricate false information, devise schemes, and conduct remote, non-contact fraud against victims, inducing them to transfer money or make payments. This not only causes serious harm to people's lives but also endangers their property and social order.

On September 2, 2022, the 36th Session of the Standing Committee of the 13th National People's Congress voted to adopt the Anti-Telecommunications and Online Fraud Law of the People's Republic of China, which came into effect on December 1, 2022. This newly promulgated Anti-Telecommunications and Online Fraud Law of the People's Republic of China comprises seven chapters and 50 articles, including General Provisions, Telecommunications Governance, Financial Governance, Internet Governance, Comprehensive Measures, Legal Liability, and Supplementary Provisions, providing robust legal support for the fight against telecommunications and online fraud.

II. Common Fraud Schemes

(I) Medical Insurance Anomaly Category

Case: Mr. G received a text message stating that his medical insurance account had been deactivated, prompting him to click a link in the message to re-authenticate his personal information before the account could be used. After Mr. G clicked the link, the page displayed what appeared to be the official website of a healthcare security administration. He filled in his personal information and linked a bank card. Subsequently, the page requested a text message verification code. After Mr. G entered the verification code, he received a text message indicating that 3,000 yuan had been transferred out of his bank card. Realizing he had been defrauded, Mr. G reported the incident to the police.

Warning:

² Any text message claiming that a medical insurance card or social security card is abnormal and containing a link is fraudulent. Do not click on unfamiliar links or enter personal information. If in doubt, consult the relevant authority or dial 96110.

² Official government websites will never request information such as bank card passwords or verification codes. Any request for a bank card password or SMS verification code is fraudulent and should not be trusted.

² Do not click on links or scan QR codes sent by strangers to avoid encountering phishing websites and malware.

(II) Impersonation of Shopping Customer Service Category

Case: Mr. Zhao received a call from an unknown number. The caller claimed to be a customer service representative, stating that the platform had inadvertently set Mr. Zhao as a “VIP Member” during a purchase, and that he now needed to cancel his “Agent” status; otherwise, a monthly automatic deduction of 600 yuan would occur. In a panic, Mr. Zhao cooperated with the “bank staff member” to whom the “customer service” transferred the call. The “staff member” stated that to cancel the “Agent” status, a transfer transaction was required to verify the bank card, and promised that all fees would be automatically refunded to Mr. Zhao during the verification period. Mr. Zhao transferred all the money from his bank card to the account provided by the other party. Half an hour later, Mr. Zhao realized that he had not received the refund, and only then did he become aware that he had been defrauded, and subsequently reported the incident to the police.

Reminder:

² The victims of fraud impersonating customer service are typically online shoppers. Fraudsters extensively and illegally obtain and purchase buyers' online shopping information and express waybill data in advance, using pretexts such as refunds or claims to carry out precise fraud against buyers or platform merchants. Consumers must carefully verify such information. When encountering situations such as “abnormal account” or “payment of a security deposit,” one must exercise caution and refrain from easily remitting or transferring funds.

² If you receive a call from someone claiming to be a customer service representative of an e-commerce, payment, or financial platform, do not readily believe them, and do not transfer or remit money. When in doubt, please directly call the official customer service number of the platform to verify.

(III) Impersonation of Public Security, Procuratorial, and Judicial Authorities

Case: Ms. Liu received a phone call from someone claiming to be from the Fujian Public Security Bureau, alleging that she was involved in a major money laundering case and had been placed on a wanted list. Initially, Ms. Liu did not believe it, but the scammer accurately disclosed her occupation, workplace, and other personal information. After adding her on WeChat, the scammer presented a "cyber arrest warrant" bearing Ms. Liu's photo, ID number, and an official "seal" of the public security authority. Believing the claim to be true, Ms. Liu, in her eagerness to prove her innocence, followed the scammer's instructions to access a fraudulent website purporting to be the "Supreme People's Procuratorate" and downloaded a "fund settlement software" from the site. Ms. Liu then entered her bank card number, payment password, and SMS verification code into the software. Subsequently, the scammer, citing the need for confidentiality during fund settlement, instructed her to turn off the computer screen. Within 30 minutes of Ms. Liu's operation, the scammer transferred a total of RMB 200,000 from her bank account in 20 separate transactions.

Warning:

² This type of fraud primarily exploits victims' unfamiliarity with the procedures of public security, procuratorial, and judicial authorities. Perpetrators impersonate officials from these agencies, falsely claiming that the victim's bank accounts, phone cards, social security cards, medical insurance cards, etc., have been misused, or that their identity information has been leaked, or that they are involved in illegal activities such as money laundering, illegal immigration, or drug trafficking via courier packages. The perpetrators then demand that the victim transfer funds to a "safe account" for investigation or supervision, thereby committing fraud.

² Public security, procuratorial, and judicial authorities do not have so-called "safe accounts," do not issue legal documents such as detention warrants or arrest warrants via the internet, and will not request your bank card numbers, passwords, or other sensitive information.

(IV) AI Fraud

Case: Mr. Guo’s friend contacted him via WeChat video, claiming to be bidding on a project in another city and needing a deposit of430ten thousand yuan, which required a corporate-to-corporate account transfer, and requested to borrow Mr. Guo’s company account for the transfer. The friend asked Mr. Guo for his bank card number, stated that the money had already been transferred to Mr. Guo’s account, and sent a screenshot of the bank transfer receipt to Mr. Guo via WeChat.

Relying on his trust in his friend and having verified the friend’s identity through a video call, and given that the receiving account provided by the friend was a corporate account at Mengshang Bank in Baotou, Mr. Guo let down his guard. Without verifying whether the funds had actually arrived, he transferred430ten thousand yuan in two installments to the account designated by his friend.

After the transfer was completed, Mr. Guo called his friend and only then realized he had been defrauded. The scammer, using intelligentAIface-swapping and voice-synthesis technology, had impersonated his friend to perpetrate the fraud. Upon receiving the report, the police and banks in Fuzhou and Baotou promptly activated the payment suspension mechanism, successfully intercepting336.84ten thousand yuan, but93.16ten thousand yuan had already been transferred out.

Reminder:

² The application scope of “AI face-swapping” is expanding, but there is a risk of misuse, and some individuals even use AI face-swapping to commit crimes, such as creating fake indecent videos or conducting face-swapping fraud. Given such realistic deceptions, everyone should take care to protect personal information and remain vigilant.

² Do not easily disclose personal information such as your ID card, bank card, or verification codes; do not readily provide personal biometric information such as facial images or fingerprints to others; avoid excessively publicizing or sharing animated images, videos, etc.; and conduct multi-factor verification to confirm identity.

² If someone claiming to be an “acquaintance” or “supervisor” induces you to remit funds via social software or text messages under various pretexts, or when any online transfer or transaction is involved, be sure to verify the other party’s identity through multiple means such as phone calls or in-person meetings, and do not transfer money without proper verification.

(V) Credit Card Agency Fraud

Case: Fan, whose business was in decline, sought a loan and came across advertisements touting “No Collateral,” “No Credit Check,” “Interest-Free or Low Interest,” and “Fast Disbursement.” He then downloaded an app to apply for a loan of RMB 40,000. A “customer service representative” within the app contacted Fan, stating that the procedures had been completed and the funds had been disbursed. However, when Fan attempted to withdraw the funds, he discovered that his account had been frozen. Fan immediately contacted customer service, who claimed that due to an operational error, an unfreezing fee equivalent to 50% of the loan amount was required. Fan managed to raise RMB 20,000 and transferred it to a designated bank account, but he was still unable to withdraw the funds. The customer service representative then instructed Fan to “boost transaction volume” on the grounds of insufficient transaction history. Fan made four transfers totaling RMB 180,000. The customer service representative further claimed that the conditions were not met for loan disbursement and demanded a RMB 20,000 security deposit. Fan abandoned the loan application and requested the return of his transferred funds. However, he was told that the funds would only be returned after the loan was approved. Subsequently, the contact was lost, and the app became inaccessible.

Warning:

² Fraudsters, under the guise of “No Collateral,” “No Credit Check,” “Interest-Free or Low Interest,” “Fast Disbursement,” and “Free Credit Limit Increase or Cash-Out,” induce victims in need of loans to transfer money by pretextually demanding upfront fees such as handling fees, security deposits, capital verification fees, or even unfreezing fees, or by using excuses such as verifying repayment capacity, adjusting interest rates, reducing interest, or improving credit scores, thereby perpetrating fraud.

² When applying for a credit card, do not trust online advertisements, QQ, or WeChat Moments promoting credit card agency services. It is best to apply at a bank branch. For any credit card-related issues, consult the official customer service.

(6) Click Farming Fraud

Case: A university student, Mr. Guo, received an unfamiliar call from a number starting with "88." The caller told Mr. Guo that he could earn money by performing click farming tasks on WeChat. After adding each other on WeChat, Mr. Guo installed a certain APP via a link sent by the caller. Subsequently, he was added to a group where he was instructed to perform click farming tasks by liking posts on Douyin (TikTok). Following the tasks published within the APP, Mr. Guo earned over RMB 700 by repeatedly liking and following accounts on the Douyin platform. After tasting initial success, the caller introduced Mr. Guo to "premium tasks." Induced by the caller, Mr. Guo paid a total of RMB 8,921 but never received any rebate. Realizing he had been defrauded, Mr. Guo reported the case to the police. Mr. Guo suffered a total loss of over RMB 10,000.

Reminder:

² Do not readily trust text messages or WeChat content such as "high commissions," "follow for rebates," "claim free gifts," or "like for rebates." Always remember that there is no such thing as a free lunch, so as to avoid being deceived.

² When receiving requests from strangers to add you as a friend via platforms such as QQ, WeChat, or Douyin (TikTok), you must exercise caution and refrain from joining group chats indiscriminately.

III. How to Prevent Telecommunications and Online Fraud?

First, we must heighten our vigilance and maintain a clear mind at all times. When receiving unfamiliar phone calls or text messages, do not readily believe them; instead, verify the information thoroughly to avoid being deceived. At the same time, we must pay attention to protecting personal information and refrain from disclosing any personal data to strangers or websites, so as to prevent it from being exploited by fraudulent groups.

Second, we should make full use of internet channels to obtain the latest preventive information and knowledge. Regularly learn about new types and forms of telecommunications fraud, and acquire simple anti-fraud techniques to become more adept at preventing telecommunications fraud.

Finally, after falling victim to telecommunications or online fraud, one should report the incident to the police immediately. If any act of telecommunications fraud is discovered, promptly report it to the authorities, gather relevant information such as remittance receipts and call records related to the fraud process, and go to the local police station or call 110 to report the crime.

In summary, telecommunications fraud has become a significant issue that cannot be ignored by society. Faced with such a challenging problem, we must work together to heighten vigilance, safeguard personal and societal security, and jointly create a harmonious and stable society.

IV. Tips for Preventing Telecommunications and Internet Fraud

1. Download the National Anti-Fraud Center APP. The National Anti-Fraud Center APP is a Chinese application designed to disseminate anti-fraud knowledge and provide early warnings of fraudulent information. Its functions include: ① Intelligently identifying fraudulent calls, text messages, and installed fraudulent APPs, and issuing warning alerts; ② One-click reporting of fraud leads; ③ Learning various fraud prevention knowledge.

2. Note! Answer calls from “96110.” When the caller ID displays “96110,” you must answer the call! “96110” is the dedicated number for anti-telecommunications and internet fraud, used specifically for public warning,劝阻, and prevention publicity. Receiving a call from “96110” means you may be under threat from telecommunications and internet fraud criminals. Please answer the call promptly and follow the劝阻 instructions to avoid being deceived!

The techniques of telecommunications and internet fraud are ever-changing, but their essence remains the same. Remember the "Four Don'ts" principle:

1. Do not lend your personal valid documents to others to prevent identity theft.

2. Do not easily disclose personal information such as passbook (bank card) passwords, address, telephone number, or mobile phone number to others to prevent misuse.

3. Do not readily believe information posted on advertisements or online platforms regarding work-study programs, job applications, click farming, loans, etc.

4. Do not readily remit or transfer funds to strangers. If a remittance or transfer is unavoidable, the recipient's information must be verified multiple times.

Shanghai Runyi Law FirmContributed by Qiqi Fang