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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

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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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China Digital

Are Douyin and TikTok the Same?

China’s popular “Douyin” app is known as “TikTok” in markets outside of China. But is it really one app?

Gabi Verberg

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TikTok, known as the international version of the Chinese successful short video app Douyin, is a global hit. Despite Bytedance’s efforts to present Douyin and TikTok as being the same product, they are actually two separate entities.

Douyin, (抖音, literally “shaking sound” in Chinese) is a short video media app owned by China’s young tech giant Bytedance (字节跳动). The app allows users to create, edit, and share short videos as well as livestreams, often featuring music in the background.

Douyin’s international name is TikTok, an app that looks the same as Douyin, while in fact, the two are not one and the same, despite Bytedance’s efforts to brand it as such.

This is not the first time a Chinese tech company presents one app as being the same everywhere, while it actually is not. Tencent’s super app Weixin (微信), also known as WeChat, runs two different systems for its Chinese and international version, as explained here.

When downloading either WeChat or Weixin, both being the same app, the app determines what features you can use and what information you can see based on the telephone number you register your account with.

In practice, this means that when you are a non-Chinese resident, you will be using the ‘international version,’ meaning you will have access to (international-specific) content that a user registered with a Chinese telephone number will not be able to see. The overseas version also does not have the same Wallet functions the Chinese version has.

 

Two apps, two systems

 

The difference between WeChat vs Weixin and TikTok vs Douyin, however, is not the same. Whereas the first is basically one app with two different modes, Douyin and TikTok are two completely separate entities.

Depending on the app store you use, you will either be able to download Douyin or TikTok. Users of Chinese app stores can only find Douyin, whereas users of the overseas Apple store or Google Play will only find TikTok available for download.

That the apps are actually separate systems becomes clear when running the same search words in both apps. As shown below, both apps provide different content for the same search words.

Left image: TikTok, Right image: Douyin.

For example, one of TikTok’s most popular channels of this moment is called ‘LisaandLena,’ a verified account by two German twins which has over 32 million fans. However, when you enter ‘LisaandLena’ in Douyin, the only result is an unverfied account which only has 102 fans and shows seven videos.

Results are the same the other way around. One of Douyin’s most popular accounts is that of Chinese actor Chen He (陈赫), who has over 52 million fans features 62 videos at this week. However, when running the same name search in TikTok, several unverified accounts come up, all showing some similar videos like those on Chen He’s Douyin account.

Top left picture: Douyin; top right and two bottom pictures: TikTok.

This suggests that, although Tiktok and Douyin have the same functions, layout, and logos, its users in China and overseas are kept completely separate and are not able to interact with eachother, something that a recent Chinese blog also discusses in detail.

 

The Rise of Douyin and TikTok

 

Ever since its launch in September 2016, Douyin has grown immensely popular. Just one year after its release, Douyin had more than 100 million users and became the second most downloaded app in the Chinese Apple store.

In September 2017, ByteDance took its app overseas; branding Douyin as TikTok for the international market, while keeping the app’s original name, Douyin, for its Chinese market.

Similar to Douyin, TikTok appeared to strike the right chord among internet users right away. In the first quarter of 2018 (note: within half a year after release), TikTok was the 6th most downloaded non-game app in the Apple app store and Google play store combined. In the Apple app store, it was even the most downloaded app. With its 45,8 downloads in the first quarter, TikTok beat apps such as Facebook, Youtube, or Instagram in the popularity rankings.

But that is not where TikTok’s short-video craze halted. In August 2018, TikTok merged with short video app Musical.ly (founded in 2014), that had over 100 million monthly active users at the time. In October last year, after receiving several investments, ByteDance Ltd. officially became the worlds most valuable private start-up, valued at 75 billion dollars.

By summer, ByteDance announced that TikTok, (meaning both apps combined) had more than 500 million monthly active users worldwide. About 300 million of these 500 million monthly active users are China’s domestic users.

 

Why does ByteDance separate Douyin and TikTok?

 

Why would Bytedance go through the effort to create two apps running on different systems? The answer partly lies in China’s strictly controlled online environment, where (social) media companies have to adhere to local policies on what is and what is not allowed to be published on their (user-generated) platforms.

In 2018, Bytedance was already criticized by authorities for hosting ‘inappropriate content’ on its news platform Jinri Toutiao. The joke app Neihan Duanzi, also run by Bytedance, was forced to shut down. Afterward, the company vowed to hire 4,000 additional censors, clearly not taking any risks in getting more warnings from authorities.

By separating Tiktok from Douyin, ByteDance can closely regulate the contents uploaded to Douyin, as they will be disseminated within China, while leaving overseas TikTok and its users relatively free to share whatever content they want to share (do note that the app also set up a team of 20 censors in Indonesia to monitor and ‘sanitize’ content from the platform there, after receiving complaints from Indonesian authorities).

 
New regulations for online video content
 

In light of tighter control on online video platforms, it seems that Bytedance’s monitoring team will have to work around the clock. On January 9, China’s Netcasting Services Association (中国网络视听节目服务协会), an association directly managed by the Ministry of Civil Affairs, issued new regulations that online short video platforms in China should adhere to. One of the new guidelines requires all online video service providers to carefully examine content before it is published.

Tech Sina reports that the new stipulations require that all online video content, from titles to comments and even the use of emoticons, has to be in accordance with regulations, which prohibit any content that is ‘vulgar,’ is offending to the Chinese political system, puts revolutionary leaders in a negative light, or undermines social stability in any way.

On Weibo, the newest regulations became a topic of discussion, with many netizens wondering how short video apps such as Douyin are going to comply, and how its users will be affected.

Although Douyin has not responded to how and if its platform will change in light of the latest regulations, we can expect that TikTok will not be affected – it will be marching to the beat of his own app.

By Gabi Verberg, with contributions by Manya Koetse

Interested to know more about Bytedance and TikTok? We recommend listening to this podcast by Techbuzz China.

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

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

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China Digital

Alipay Changes Name to Hanbao (But for Users, Nothing Will Change)

Alipay, oh, Alipay, wherefore art thou Hanbao now?

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First published .

What’s in a name? That which we call Alipay, by any other name would do the trick. But although the title has changed, nothing will change for Alipay users.

On January 8, news that Alibaba’s online payment platform ‘Alipay’ (Zhifubao 支付宝) changed its official name to Hanbao (瀚宝), became a big topic of discussion on Chinese social media. The hashtag ‘Zhifubao Company Changes Name’ (#支付宝公司更名#) received millions of views on Tuesday, reaching over 30 million by Tuesday night.

Zhifubao (支付宝) is the Chinese name for the country’s leading mobile and online payment app. The brand ‘Zhifubao’ literally means ‘payment treasure.’ Outside of China, Zhifubao is known by its English name ‘Alipay.’

Alipay is operated by the Ant Financial Services Group (蚂蚁金服), an affiliate company of Alibaba.

The name change was reportedly registered for the ‘Zhifubao (China) Information Technology Company’ (支付宝[中国]信息技术有限公司), that changed into ‘Hanbao (Shanghai) Information Technology Company’ (瀚宝[上海]信息技术有限公司), just as ‘Alipay China Holding Limited’ has been changed to ‘Hanbao China Holding Limited.’

The name change was registered on December 18th of 2018. The legal ownership of the company has also been changed from Ma Yun (Jack Ma) to Ye Yuqing (叶郁青), who is the Ant Financial Chairman. Yicai Global already reported about a change to Alipay’s legal entity in the summer of 2018.

In October of 2018, the Financial Times reported that Jack Ma had quietly relinquished his ownership of the legal entities at the heart of Alibaba, after announcing he would retire as Alibaba’s chairman.

The Alipay company responded to the commotion, saying that the name change is just an “administrative matter” that will not affect consumers using the app in any way.

On Weibo, however, not everyone is happy with the change. “I owe Jack Ma some money, why do I now need to return it to Ye Yuqing?” one commenter wonders. Many others say similar things, jokingly saying they now no longer owe Jack Ma money. The Alipay platform allows users to buy items with credit through their ‘Huabei’ loan tool.

“Is Jack Ma no longer looking after us?!”, others say. “Being legal representative and being a shareholder are two different things,” one Weibo user replies.

The fact that the ‘Hanbao’ name is pronounced the same way as ‘Hamburger’ (汉堡) in Mandarin is also a reason some people are mocking the name change. Some netizens wonder if ‘Alipay’ will now change into ‘Hanbaopay.’

In 2017, there was also some online commotion when it was announced that McDonald’s China would change its name from Maidanglao to Jin Gongmen (‘Golden Arches’). At the time, McDonald’s China also responded to its name change, saying that it was for “official certification” only.

Time has shown that indeed nothing changed; just as the McDonald’s hamburgers are still the same, Alipay’s official hamburger-sounding new name is unlikely to affect its payment convenience.

Read more: Insights into Sesame Credit & Top 5 Ways to Use a High Sesame Score

By Manya Koetse

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

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

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What’s on Weibo provides social, cultural & historical insights into an ever-changing China. What’s on Weibo sheds light on China’s digital media landscape and brings the story behind the hashtag. This independent news site is managed by sinologist Manya Koetse. Contact info@whatsonweibo.com. ©2014-2018

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