Home » China’s Internet Authority Cracks Down on Online Frauds Among Fake Financial Applications

China’s Internet Authority Cracks Down on Online Frauds Among Fake Financial Applications

by iTech Post : Top News
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The government agency in China that regulates the internet said that since the year’s beginning, it has eliminated 42,000 fraudulent applications and added illicit marketplaces to its fraud denylist.

Concerns were expressed on Chinese social media about the heist of 1.43 million yuan (210,000 USD) from a man who only paid 741 yuan (110 USD) on an online transaction.

CAC Announced Shut Down of 42,000 Bogus Programs and Blocklistig of Illegal Markets

In the biggest internet market in the world, Chinese officials have intensified a broad campaign to combat online fraud after receiving a warning that scammers have been developing several fake financial services applications to deceive users.

The Cyberspace Administration of China (CAC), a government agency that monitors the internet, said on Friday (July 1) that it had taken down 42,000 of these fake applications since the year’s beginning and had added the illicit marketplaces to its fraud blacklist. More than 3.8 million websites and 514,000 applications are presently on this blocklist.

An increasing number of fake financial applications, according to the regulator, copy well-known platforms like JD Finance, run by JD Technology, a fintech subsidiary of JD.com, and Mashang Consumer Finance, one of the biggest online consumer lenders in the nation.

According to the CAC statement, 5,677 phony applications imitating JD Finance were discovered.

The CAC alleged that sure bogus platforms with state-backed claims have also duped consumers. The enormous figures provided by the CAC reflect the vast potential market-a nation with more than 1.4 billion people-on which these con artists ply their trade.

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A report in April by Xinhua News Agency, which quoted a CAC source, said that in recent years, usage of applications for online scams accounted for nearly 60% of all telecom network-related fraud incidents on the mainland. According to the investigation, the fraudulent applications seem just like platforms for part-time online billing, rapid loans, and even those of big banks.

According to the article, the CAC collaborated with the Ministry of Public Security and other pertinent authorities to monitor these frauds and set up an online early warning system to inform customers.

Theft of 210,000 USD From a Man Concerned Chinese Social Media

The theft of 1.43 million yuan (210,000 USD) from a guy who had only spent 741 yuan (110 USD) on an internet transaction raised concerns on Chinese social media in June this year.

The guy with the last name Han from Dalian in the Liaoning region of northeastern China got a call on December 31, 2021, from someone posing as a customer service representative for an online shopping website.

Han was notified that the firm had chosen to recall items after learning that numerous consumers had sensitivities after taking their sold vitamin C tablets. Han would be given a 741 yuan (110 USD) refund as a result.

Han downloaded a video call software and began a screen share with the person in the hopes of getting his money back, following the person’s directions and believing them to be sincere due to the specific information they possessed.

He progressively transferred the balance from his ten bank cards, his wife’s five bank cards, and his Alipay deposit. As a result, Han deposited a total of 1,430,000 yuan (213,400 USD) to a bank account given by the con artists, taking into consideration online loans and credit cards.

According to China Central Television, a state-owned broadcaster in China, the procedure took more than half a day before Han realized he had been tricked and phoned the police that evening at 7:00 p.m.

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