On June 13, over 249 people were detained on suspicion of participating in a software fraud scheme largely based in Shenzhen, Guangdong province, China Daily reported. Police have frozen RMB42.6 million in funds and confiscated over 1,000 computers and phones used to carry out the alleged fraud.
People.cn reported that police assigned 450 officers to 22 locations in Shenzhen’s Longgang, Longhua and Futian districts as well as Guangzhou, apprehending over 400 people in total. Of that number, 249 were detained by police.
According to the vice-captain of Longgang’s police bureau, Li Gang, scammers coordinated with various software companies as well as a technology company called Qianhai First Internet, which orchestrated the entire scheme.
Li told media that fraudsters posed as investors, pretending to have ‘inside information’ on stocks in order to entice victims to use specially developed trading software. Through the software, scammers charged high commissions on each trade and misrepresented data in order to defraud money from users.
“If the victims put one million yuan into this software, they [the scammers] would first give them some ‘profits’ and then take all of their money through various means,” Li explained.
According to People.cn, while making arrests at Qianhai First Internet headquarters in Shenzhen, police found some applicants in the midst of job interviews, with no idea that they were applying to a fraud-based company. According to police, initial investigations have shown that nearly 200 victims were cheated by the scheme.
[Image via People.cn]
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