China: Chinese government’s strict action against corruption, will take action against government investment scams worth millions of dollars

Chinese authorities have launched a crackdown on several cases of multimillion-dollar fraud using fabricated government documents to lure investment in fake national projects. Public security agencies have successfully addressed more than 260 cases in 2023 and dismantled 180 criminal groups related to fraudulent national projects that defrauded investors of 1.5 billion yuan ($210 million). These fraudulent schemes are often conducted online and often operate overseas. These usually involve defrauding individuals into paying initial capital or membership fees. Typically, fake poverty alleviation projects use forged government documents and certificates.

Online fraud remains a significant challenge in China. Especially when the country wants to attract investment funds domestically and internationally to boost various sectors and industries amid a slowing economy. Global asset managers setting up shop in China are grappling with rampant scams, where online fraudsters illegally use their brands and logos to dupe investors with attractive returns on new products. Last month, Singapore sovereign wealth fund Temasek Holdings said some scammers were fraudulently claiming to represent its Shenzhen office and soliciting money from individuals on the basis of paying them back with commission.

Chinese police this year have begun cracking down on online scams in Myanmar, where more than 100,000 people engage in telecom fraud every day. More than 31,000 telecom fraud suspects were handed over to China by Myanmar authorities in November.