Connect with us

China Digital

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

Published

on

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

image_print

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.

Advertisement
1 Comment

1 Comment

  1. Avatar

    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.

Leave a Reply

Your email address will not be published. Required fields are marked *

China Digital

Cybersecurity Experts Warn: Flicking the V-Sign in Photos Could Give Away Your Fingerprint Data

V-sign selfie pictures could disclose personal information about your fingerprints, security experts warn.

Manya Koetse

Published

on

Our cameras are getting better, but that’s not always a good thing. Chinese internet security experts warn that peace sign photos could potentially be abused to collect fingerprint data.

The 2019 China Cybersecurity Week was held in Shanghai this week, and made it to the top trending topics on Sina Weibo today.

The topic attracting the attention of millions of Chinese web users is not China’s cybersecurity in general, but one that was discussed during the event, namely the potential privacy risks in making a V-sign on photos.

Chinese internet security experts at the conference warned that people are unaware that they could be giving away personal data information about their fingerprints when sharing photos of themselves making a peace sign.

If the side of the fingertips is facing the camera, and if there is not a lot of space in between the camera and the hand, it would potentially be possible to gather fingerprint data using photo enlargement tools and AI techniques.

Photo by Priscilla Du Preez.

The deputy director of the Shanghai Information Security Industry Association stated that photos displaying a fingertop-facing V-sign taken within 1,5 meter of the camera could potentially disclose 100% of one’s fingerprint information, China Press reports.

A booth at the conference giving information about fingerprint information leaking through V-sign photos. Photo via China Press.

Criminals could reconstruct fingerprint patterns of other people and abuse them in various means – basically wherever fingerprint information is used to confirm people’s identities (e.g. biometric door locks or fingerprint payment scanning).

Besides not disclosing fingerprint information in photos posted online, experts also warn people not to leave fingerprint information at machines without confirming their purpose and legality.

Fingerprint scanning is used for a multitude of purposes in China. Foreigners who arrived in China since 2017 will also be familiar with the policy of collecting foreign passport holders’ fingerprints upon their arrival in the PRC.

On Chinese social media, the topic “Making a V-Sign Could Leak Your Fingerprint Data” is one of the biggest being discussed today. On Weibo, the hashtag has gathered 200 million views at time of writing (#拍照比剪刀手会泄露指纹信息#).

Some commenters advise people on social media to make peace signs with the nail side of the fingers facing the camera. (That gesture, however, is deemed an offensive gesture in some nations.)

The V-sign is often used as a rather non-symbolic or cute gesture across in East Asia.

Although in many Western countries, the symbol is mostly known as the victory sign (“V for Victory”) as used during World War II, it entered mainstream popular culture in Japan since the 1960s and spread to other Asian countries from there.

This Time article explains how the gesture appeared in Japanese manga in the late 1960s, one of them titled V is the Sign (Sain wa ‘V’ / サインはV).

Amid the concerned Weibo users, some are not worried: “It’s ok,” one commenter writes: “Using a Beauty App smoothes out my skin anyway.”

There are also many commenters who are confused about the news, wondering what advanced photo camera quality and AI technique might implicate for future privacy risks concerning face recognition data and iris scanning software (“Should we also close our eyes?”).

Others offer a different solution to the unexpected V-sign issue: “Just flip the middle finger instead.”

By Manya Koetse

The images used in the featured image on this page come from 追星娱乐说.

Spotted a mistake or want to add something? Please let us know in comments below or email us. Please note that your comment below will need to be manually approved if you’re a first-time poster here.

©2019 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

image_print
Continue Reading

China Digital

“Taobao Life”: This Feature Shows How Much Money You’ve Spent on Taobao

Some users just found out they could’ve bought a house with the money they’ve spent on Taobao.

Manya Koetse

Published

on

Over the past few days, a new Taobao feature that allows users to see how much money they have spent on the online shopping platform is flooding Chinese social media.

Taobao Marketplace is China’s biggest online shopping platform. Owned by tech giant Alibaba, Taobao was launched in 2003 to facilitate consumer-to-consumer retail.

For many people, Taobao shopping has become part of their everyday life. Whether it is clothes, pet food, accessories, electronics, furniture – you name it, Taobao has it.

Because buying on Taobao is so easy, fast, and convenient, many online consumers lose track of how much they actually spent on the platform – especially if they have been using it for years already.

Thanks to “Taobao Life,” users can now see the total amount of money spent on their account.

How to do it? First: go to Taobao settings and click the profile account as indicated below.

Image by whatsonweibo.com

Then click the top icon that says “Achievement” (成就).

Image by whatsonweibo.com

And here you find what you have spent in this account in total. On the left: the money spent, on the right: the amount of purchases.

Image by whatsonweibo.com

Since I’ve used started using this Taobao account for the occasional clothes shopping since 2016, I’ve made 122 purchases, spending 7849 yuan ($1140) – a very reasonable amount compared to some other Taobao users, who are now finding out they could have practically bought an apartment with the money they have spent on Taobao.

This user, for example, found out they spent over half a million yuan on Taobao ($75,500).

Image via whatsonweibo.com

This user below has spent over 1,1 million yuan on Taobao ($170,000).

Some people discuss all the things they could have bought with the money they have spent on Taobao over the years: “As soon as I saw the number, I wanted to cry,” one Weibo user writes: “What have I done?!”

Another person, finding out they have spent 230,000 yuan on Taobao ($33,400), writes: “This can’t be true! Surely this must be a mistake!?”

“If I wouldn’t have spent all this money on Taobao, I would’ve been rich,” others say.

The topic of Taobao’s total spending amount has become so popular on Chinese social media this week, causing so much consternation, that Taobao posted a message on its Weibo account on July 27, writing: “We heard you guys couldn’t sleep last night..”

Although many people are shocked to find out the money they’ve spent on Taobao, others console themselves with the thought that adding up everything they have spent on Taobao, they were actually ‘rich’ at some point in their lives.

 

By Manya Koetse , with contributions from Miranda Barnes

Spotted a mistake or want to add something? Please let us know in comments below or email us. Please note that your comment below will need to be manually approved if you’re a first-time poster here.

©2019 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

image_print
Continue Reading
Advertisement
Advertisement

Support What’s on Weibo

If you enjoy What’s on Weibo and support the way we report the latest trends in China, you could consider becoming a What's on Weibo patron:
Donate

Facebook

Instagram

Advertisement

Contribute

Got any tips? Suggestions? Or want to become a contributor? Email us as at info@whatsonweibo.com.

Popular Reads