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Top 8 Scams in China to Watch Out for (2018)

From oldskool scams to WeChat scams – people are still falling for this every single day.

Gabi Verberg

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As times change, so do scams. In an age of smartphones and social media, Chinese scammers are more prone to abandon old tricks and use new technology for their swindling business. But in a time of more digital scams, there are also still scammers who use people’s inexperience and desperation to earn money by simply fooling them on the streets. Here’s a top 8 of 2018 [check out top 10 China scams in 2015 here].

With the rapidly increasing number of online transactions in China, the persisting problem of counterfeit money scams in China may now be less of a problem than it was before. But other scams are on the rise.

Although people are now less vulnerable to scams involving cash money, services as WeChat wallet and Alipay are also not without peril. Over the years, scammers have developed numerous ways to cheat people and steal money from WeChat or Alipay wallets.

From infecting smartphones with viruses, to letting people “voluntarily” hand over their personal information, scammers have found ways to trick people from all ages and all layers of society.

As a follow-up to an earlier top 10 we did on scams in China, What’s on Weibo has compiled a list of 8 scams that are recently trending on social media or in the Chinese newspapers.

 

#1 WeChat Scams: Hacking Accounts

 

With over 800 million users of WeChat Pay in China, WeChat users are a lucrative target for scammers. In recent years, there have been various cases of WeChat scams, in which hackers of private accounts pretend to be a friend or family member, and convince others to send them money.

Last summer, the news went viral of Chinese parents becoming a victim of scammers pretending to be their children.

Image via http://www.sohu.com/a/201988031_689129

These hackers, using the children’s accounts, told ‘their parents’ that they had to attend a special course or lecture, often held by professors from renowned universities such as Tsinghua or Beijing University. Once the scammer convinced the parent to pay for the extra curriculum activity, the scammers send the contact information of the “teachers” in charge of the event.

Once the parents added the “teachers'” to WeChat and transferred the money, the scammers continued to get parents to pay for all sorts of things such as service fees, registration fees, supply fees, etc.

In other more extreme examples, parents were asked to follow a link to complete the payment. The link installed a virus onto the parent’s phone, allowing the scammer to have full access to the victim’s WeChat wallet.

 

#2 Voice Scams: Imitation Champions

 

Another rising problem that China and many other countries are currently facing is the issue of so-called ‘voice scams.’ Often done through WeChat, scammers collect a person’s voice messages and then pretend to be this person by imitating his or her voice.

The scammers will then make a fake WeChat account that is an exact copy of the one they are imitating. They will contact family members and friends of the person they are imitating, and ask to borrow money. Because the voices sound so much alike, they often win the trust of people and get them to send the money.

Image via http://www.sohu.com/a/201988031_689129

In one extreme case, a young man’s voice was imitated so well that scammers were able to convince the man’s mother that her son was abducted. In a complete panic, the mother transferred the demanded ransom.

In all cases, the police advise people to always confirm face-to-face with the other person before sending money. Additionally, they also warn people should be on their guard sharing voice messages or any other form of personal information with strangers.

 

#3 Delivery Scams: Too Many Packages

 

As easy and convenient online shopping might seem, it is not without danger. Just as with WeChat scams, there are many ways in which scammers will try to find weak points within the system.

One of the issues that makes people more vulnerable to scams within the world of online shopping is that many people order so many products online, that they are more likely to believe that a package is theirs – even if they have never actually ordered it.

The most common online shopping scam involves “cash on delivery,” where the courier asks people to pay upon delivery. Once opening the packaging, people discover their package is actually empty.

In another version, scammers will first call the victim pretending to be their neighbor. They will ask them to do them a favor and accept a package, since they are not able to be home on time to accept it themselves. This way, people are even more likely to accept the package.

In yet another scam, often referred to as the “compensation scam,” scammers call customers and pretend to be employees of a delivery company. On the phone, they will tell that one of their carriers accidentally lost or damaged the ordered product and that they want to compensate for the loss. The only thing the victim has to do is to fill out an online “compensation form” for which personal information and bank information is required. With this information, the scammers can easily break into their victim’s bank account.

In some cases, scammers ask customers to add a WeChat account so they can be compensated for their ‘loss’. In the final step, they will require them to scan a QR-code, or click a link, and to transfer a small ‘service’ fee. Once they have transferred the fee, a virus will be installed on their phone, allowing the scammers to access their WeChat wallet.

Delivery companies advise their customers not to accept any package if they are not sure they have actually ordered it. With cash delivery packages, customers are advised to always check the package before sending the courier away.

About lost or damaged packages: delivery companies will never ask you to fill out a compensation form or share any personal or bank information. In case the delivery company loses or damages your order, the company you bought it from will then inform you and transfer the money back to your bank account.

 

#4 Catching Red Envelopes

 

Snatching ‘red envelopes’, qiǎng hóngbāo (抢红包) in Chinese, originated from China’s long-standing tradition of giving red envelopes to children to celebrate the Chinese New Year.

However, as the tradition of giving red envelopes is transforming from offline to online, the new phenomenon of ‘snatching red envelopes’ has also become more ubiquitous.

Through WeChat, people can send red envelopes to a group of friends: the (few) people who are first in opening that envelope will then receive an amount of money. Companies often use this feature as a marketing tool.

Scammers also make use of this red envelope craze. The ‘red envelop scam’ starts with a message via one of one’s WeChat contacts, reading something like: “I just discovered a group and the host of the group is going crazy! He keeps sending red envelopes! Add yourself to the group and snatch some envelopes.” This message will often be followed by a message telling you that you will be rewarded money when you add more people to the group.

Image via http://www.tanmizhi.com/html/4445.html

Within a few minutes, the group chat has added hundreds of people. As members increase, the group owner will encourage people to add more people to the group by keeping on sending red envelopes. In the meantime, the group owner will send out a message saying that the ones who already opened an envelope are registered. In case they do not add ten people to the group within 30 minutes they will be kicked out. As for those who add 20 people to the group within half an hour, they will be rewarded even more money.

This way, people will keep adding contacts to the group. And because it is not allowed to talk in the group, people are also not able to warn each other of its potential dangers, because, at this point, the red envelopes will actually change into QR codes – the group owner will post a message saying that his transactions surpassed the transactions limit of the day and that if people want to continue receiving money, they will have to scan the QR-code and pay the symbolic amount of one yuan ($0.14). If they do so, they are promised to be rewarded with a high amount of money.

Once these people pay the one yuan, they have been scammed: through the QR code, the scammers have installed a virus into their WeChat, allowing them to empty their WeChat wallet. There are many versions to this kind of “red envelope” and “free money” scams. To avoid being scammed, it is best to remember that there is no such thing as getting money for nothing – there’s always a price to be paid.

 

#5 Winning Lottery-Ticket Scam

 

For the “winning lottery ticket scam,” scammers play with people’s minds. And no matter how simple this trick may seem, it is a worldwide phenomenon.

The scam starts with the victim finding a lottery ticket that has intentionally been placed somewhere. Since the owner of the lottery ticket is nowhere to be found, most people finding the ticket then call the number registered on the ticket to find out whether or not the ticket won a price. And, of course, they are told that the found ticket is indeed a ‘prize-winning’ ticket.

Because people, at this point, are so excited about their unexpected ‘luck’, they often no longer keep their mind straight. The scammer on the phone will inform the lucky finder that they only need to pay a handling fee before they can receive their prize money.

In some cases, the scammers even convince the victim to pay an income tax before receiving the prize money. Once the lucky winner paid the handling fee or income tax [via WeChat or Alipay], the connection will be cut off, and of course, the victim will never get the prize.

 

#6 Found Wallet Scam

 

You are walking outside, and suddenly you find a wallet on the streets – the owner is already out of sight. As you stand still with the wallet in your hand, a stranger comes up to you accusing you of stealing money from that found wallet.

It is a scam that frequently occurs in China, and it is easy to imagine that someone who just found a wallet might feel awkward about the situation, especially when accused of trying to steal the money inside of the wallet.

While explaining that they did not intend on trying to steal money, the stranger will intimidate the finder to give him some of the cash inside to settle the matter. Many people will do so in order to avoid a public scene.

But that is not the end of the scam, as the ‘owner’ of the wallet will then suddenly pop up, asking for his wallet, and discovering that some money inside is missing. The ‘finder’ will then compensate for that loss to get themselves out of the humiliating situation.

Obviously, the two men – the ‘bad guy’ demanding the money and the person who lost the wallet – work together in setting people up like this. Police advise people who find a wallet to turn it in at the closest police station.

Netease has reconstructed the scam on a video here.

 

#7 Fake Job Scam

 

One of the most common scams in China nowadays is the so-called “fake job scam.” Scammers will place fake job ads, and meet responders outside a company office for their ‘job interview.’

In most cases, the applicant is ‘hired’ immediately after the job interview. But before they can get to work, they first have to pass a medical test at a designated ‘research center.’ The victim is then told that he has to pay for the transportation and medical fees, and that the money will be reimbursed at the end of the first working month.

In many cases, victims also pay for service costs and forward a deposit for cards that allow them into the office, etc. When all these fees are paid, the ‘company’ can no longer be contacted and is suddenly untraceable.

To avoid people from getting tricked into these fake job scams, police advise to only reply to job ads with a registered phone number and official company address.

 

#8 Trap Loans: A Mountain of Loans

 

The problem of ‘trap loans’ has received much media attention in China over recent years. Earlier this year the story of one woman went viral; she borrowed 2,000 yuan ($292) and ended up with a 150,000 yuan ($21.872) debt two months later.

She is just of among many victims of China’s “trap loans.” In various other cases reported by the media, people end up in such huge debts and depression, that they take their own lives.

Scammers specifically target people who are temporarily short of cash. It often starts with an individual lender offering a quick loan, only for a few days, in the name of a small loaning company (小额贷款公司). Once the person tells the loaning company they need credit, a lender will come up with a contract that has blank spaces in them. The contract is often so long and complicated that people don’t read it through carefully enough.

When the contract is signed, the loaning company will insert extra information into the blank spaces of the signed contract. They will, for example, change the time you are allowed to borrow money, the interest rate, or the name of the lender.

In the next phase, the loaning company will purposely make the borrower breach the contract by, for example, temporarily being out of service or unreachable, so that the borrower is not able to pay off his debts as recorded in the agreement. They will then face the sum of accumulated interest on the borrowed money, and fines for overdue payments.

Around this time, the lender will introduce the borrowers to another loaning company where they can take out more loans to pay off the debts of the first contract. This can go on for many years and many contracts. The borrower will not be able to repay the entire sum of borrowed money, so keeps on paying huge interest rates and fines for overdue payments.

There have been reports of trap loans in various forms such as campus loans, where students are tricked into ‘easy money loans’ by on-campus advertisements; or naked loans, where scammers demand people to send a (partly) nude picture of themselves holding their ID as collateral. Often this photo will later be used to blackmail a person.

Want to read more? Also check out our previous ‘Top 10 Scams to Watch Out For in China‘.

By Gabi Verberg

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

Gabi Verberg is a Business graduate from the University of Amsterdam who has worked and studied in Shanghai and Beijing. She now lives in Amsterdam and works as a part-time translator, with a particular interest in Chinese modern culture and politics.

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    David

    June 4, 2019 at 7:21 pm

    Thanks for sharing Gabi! was a very interesting read to see how the scams have been evolving haha. Perhaps to share one shared by the community at https://travelscams.org/asia/china/ a new one that is reported is the QR code scam. In essence it is similar to the “catching red envelopes” scam but done differently.

    For this version, criminals paste their own QR code over the original ones by merchants (shops, bicycle sharing, etc). It is pretty much impossible to detect with the naked eye and in Guangdong alone, an estimated US$13 million was lost this way.

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China Digital

Discussions on Didi After $1.2 Billion Fine for User-Data Violations

“Don’t even worry about rectifying, just go away,” some commenters wrote about Didi after learning the car-hailing company illegally and excessively collected user data.

Manya Koetse

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One of the topics trending on Chinese social media this week is Chinese ride-hailing giant Didi and the precarious situation the company is in. Online discussions are ongoing after the Cyberspace Administration of China (CAC) imposed a fine of 8.026 billion yuan [US$1.19 billion] on Didi Global on July 21 due to its alleged violation of at least three major laws, namely China’s Network Security Law, Data Security Law, and the Personal Information Protection Law.

Didi CEO Cheng Wei and President Liu Qing also each received a fine of one million yuan (US$148,000) personally as they were held responsible for the company’s violations.

Beijing launched a cybersecurity investigation into Didi on July 2nd of 2021, just days after the company’s June 30 US$4.4 billion initial public offering in New York. The investigation was launched “to protect national security and the public interest,” and also came at a time when Didi reportedly went against the CAC by pressing ahead with its New York stock listing despite allegedly being urged to wait until a cybersecurity review of its data practices was conducted. Shortly after, the CAC ordered domestic app stores to remove all of Didi’s services.

Now that the investigation into Didi is completed, the CAC states that there is conclusive evidence that Didi committed 16 law violations including illegally obtaining information from users’ smartphones – such as collecting information from users’ clipboards and photo albums – and “excessively” collecting personal data, including facial recognition and information relating to age, occupation, home/work addresses, and family relations (also see Zichen Wang’s write-up on this here).

Didi Chuxing, China’s biggest taxi-hailing service, has over 550 million users and 31 million drivers. Besides taxi-hailing, Didi also offers other app-based transportation services, such as private car-hailing and social ride-sharing.

It is not the first time for the company to be in hot water. In 2018, the murders of two young women by Didi drivers caused national outrage and sparked concerns over customers’ safety when hailing a car through the Didi company.

On Weibo, various hashtags relating to Didi went trending over the past week, such as “Didi fined 8.026 billion yuan” (#滴滴被处80.26亿元罚款#), “Didi excessively collected 107 million pieces of passengers’ facial recognition information” (#滴滴过度收集1.07亿条乘客人脸识别信息#), and “Cyberspace Administration of China imposes administrative penalty on Didi” (#网信办对滴滴作出行政处罚#).

Some Weibo users wonder why Didi is just receiving a fine rather than being immediately shut down over the serious violations they committed. “You still not shutting them down?” was a popular recurring comment. Although rumors surfaced over Didi’s car-sharing business going bankrupt, some expert bloggers claimed the company still would have enough financial power to go on after paying the fine.

The CAC has not provided details about the exact nature of the previously reported government’s “national security concerns” regarding Didi, but on Weibo, some netizens share their ideas on the matter: “Didi has a lot of people’s data. Just by hailing a car, they determine your cellphone number, your occupation, address, family member information, The U.S. could carry out targeted bribery or intimidation of some important people in China, as well as obtaining the geographic data Didi has, which would mean a heavy blow to China’s cyber security.” Another commenter wrote: “Didn’t they already sell this illegally obtained user information? Is it a threat to national security?”

Others worry about their own privacy, writing: “Do people still have privacy nowadays? We talk about one thing today, tomorrow we’ll be bombarded with advertisements for that very same thing.”

But others mentioned that the general consumer will keep using Didi when booking a taxi via app, simply because it’s still the major player in the market.

On Weibo, Didi responded to the administrative punishment via their official Weibo account, writing:

We sincerely thank the departments in charge for their inspection and guidance, and we thank the public for their criticism and supervision. We will draw a lesson from this, and will pay equal attention to the importance of security and development, and we will further strengthen the construction of our network security and data security, enhance the protection of personal information, effectively fulfill our social responsibility, serve all of our passengers, drivers, and partners, for the company’s safe, healthy, and sustainable development.”

“Don’t even worry about rectifying, just go away,” some commenters wrote.

Read more of our articles about Didi Chuxing here.

By Manya Koetse
With contributions by Miranda Barnes

 

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©2022 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China and Covid19

Beijing Communities Asking People to Wear Electronic Monitoring Wristband during Home Quarantine

“It’s almost like wearing electronic handcuffs. I don’t want to wear this,” one tech blogger wrote after being asked to wear a monitoring wristband during home quarantine.

Manya Koetse

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Social media posts from Beijing residents claiming that they were asked to wear electronic monitoring wristbands during home quarantine have prompted angry reactions on Weibo.

“Last week, I went on a work trip to Guangzhou and before I returned to Beijing I did the nucleic acid tests in time. I also reported my home isolation to authorities and received the antigen tests. In the middle of the night, I then received a notification from my community that they are giving me an electric bracelet to wear,” one Beijing resident writes on Weibo on July 14: “If they need to monitor my health, I’ll cooperate with temperature checks and nucleic acid tests at the door, but I cannot accept this so-called 24-hour electronic monitoring.”

Similar stories by Beijing residents returning back to the city after traveling have popped up on Chinese social media over the past few days. Tech blogger Dahongmao (@大红矛) – who has over 170,000 followers on Weibo – also shared their wristband experience, writing:

After returning to Beijing from a business trip, I reported to the community on my own initiative, and also volunteered to take the tests and stay in home isolation. Seeing that I could go out, a lady from the community called me and said that there was a new policy again and that all people in home quarantine must wear an electronic bracelet, and that it would be delivered to me that night. She explained that it is used to check the body temperature and that they could conveniently monitor body temperature data on the phone. I said that I had already strictly followed Beijing’s requirements in accordance with the anti-epidemic work. If this bracelet can connect to the internet, it definitely is also able to record my movements and it’s almost like wearing electronic handcuffs. I don’t want to wear this. If you want to know my temperature, just come to the door and check me, that’s fine, I’m also still clocking in to do antigen testing everyday. She said it’s a requirement from higher-up and that I shouldn’t make it difficult for her, I said I would not want to make it difficult for her but that she could tell those above her that I won’t wear it. If you insist that I wear it, you’ll have to come up with the documents that prove that it’s a Beijing government requirement and that this is not some unlicensed company trying to make a profit.

As more stories started surfacing about Beijing compounds asking residents to wear electronic bracelets during their home isolation, various hashtags related to the issue made their rounds on Chinese social media and photos taken by people wearing the bracelets also were posted online.

Photos of the wristband’s packaging show the electronic wristband is manufactured by Beijing Microsense Technology (北京微芯感知科技有限公司), a local Beijing company established in April of 2020 that is located in the city’s Haidian District.

These stories raised concerns online, especially because the wristband had not been announced as a policy by the city’s official health authorities.

“Resist the craziness,” one Weibo user wrote: “Our personal freedom is covertly being limited, and there’s people making a profit behind it.” “This is becoming more and more like one big prison,” one Zhejiang-based blogger wrote.

Tech blogger Dahongmao later updated their Weibo story about the bracelets, saying the community staff had come back to retrieve the electronic bracelets on Thursday afternoon because they had received “too many complaints.” News of the wristbands being recalled after too many complaints also became a hashtag on Weibo (#大量投诉质疑后社区回收电子手环#).

Chinese state media commentator Hu Xijin (@胡锡进), who is Beijing-based, also responded to the controversy, emphasizing that the bracelets had already been retrieved by community workers and that Beijing city would not force people to wear electronic wristbands during home quarantine. “I wonder if this adjustment was made due to the pressure of public opinion,” Hu wrote: “But even if it was, let us encourage this kind of respect shown in the face of public discontent and opposition.” He also made a video about the incident for his Hu Says series.

Earlier on Thursday, Hu had called some of the posts about the electronic wristbands “unfounded rumors” because people returning to Beijing from low-risk regions inside of China do not even need to isolate at home at all.

According to the official guidelines, individuals arriving (back) in Beijing must have a green health code and a negative nucleic acid test obtained within 48 hours. Only those individuals coming in from overseas must complete a 7-day centralized quarantine plus 3-day home isolation. Secondary contacts of confirmed cases will also be asked to do 7 days of home quarantine.

“Don’t say it’s just rumors,” one Weibo user wrote: “I’m wearing one [a wristband] right now. I had to, because my roommate returned from a trip.”

Blogger Dahongmao responded to Hu’s post about the wristband, saying: “Hu, if you are really concerned about this, then help to ask the relevant departments about these three questions. 1) Why doesn’t this consumer electronic product have the nationally required 3C certificate? 2) How come this anti-epidemic product doesn’t have medical device certification? 3) Without these two certificates, how did this [company] enter the purchasing list of the government for the Winter Olympics?”

As reported by Jiemian News, the same company that allegedly produced these wristbands also manufactured a smart wearable temperature measurement device called a “temperature band-aid,” which was used in the Olympic Village during the Beijing Winter Olympics.

On the late afternoon of July 14, the Beijing Municipal Health Commission responded to the online concerns about the electronic wristband, reportedly saying that home isolation is only necessary for people returning to Beijing from inside of China if they are coming from high-risk areas, and that there is no official policy in place regarding the need to wear electronic bracelets.

To read more about Covid-19 in China, check our articles here.

By Manya Koetse
With contributions by Miranda Barnes

 

Get the story behind the hashtag. Subscribe to What’s on Weibo here to receive our weekly newsletter and get access to our latest articles:

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2022 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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