China sentences nine for defrauding 66,800 Indians in $6.2 million telecom scams

Nine people were sentenced to prison in China along with fines for being involved in a telecommunication fraud scheme targeting Indians. The scammers siphoned Rs 517 million ($6.2 million) from 66,800 victims through fake investment platforms and false identities, reported Global Times.

The romance scam targeting Indians was led by a suspect surnamed He, reported Legal Daily. He rented office space in Heze, East China's Shandong Province, in May 2023, where he established the fraud syndicate, recruited members and acquired overseas servers. He liaised with Indian companies, coordinated fund supervision and diverted capital.

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His accomplices trained and managed the scammers, with experienced fraudsters specifically designing communication strategies and coaching employees. Member surnamed Chen was responsible for maintaining the payment channels for the fraudulent investment platform.

How did they scam Indians?

“I met an Indian on a chat app and learned about the SENEE investment platform. Through messaging, we enticed Indians with promises of 8 percent to 15 percent monthly returns on 1,000-rupee ($12) investments,” confessed He, the Global Times reported, citing the Legal Daily.

“When deposits surpassed the promised returns, the scam team would shut down the platform or convert debts into equity to freeze funds,” said He.

The scammers then used third-party payment platforms to convert investments into USDT cryptocurrency, exchanging it for RMB or USD while taking a 15 per cent commission.

“I portrayed myself as a wealthy Indian woman who achieved success through fund investments,” a co-conspirator surnamed Li said. “I cultivated relationships with Indian men on social media platforms to entice them into investing in SENEE funds.”

The gang also created fake social media profiles portraying successful yet emotionally vulnerable Indian women, where they posted lifestyle, fitness, and travel photos, which they geo-tagged with Indian locations. They engaged targets in relationship-building chats.

To appear credible, they created counterfeit corporate documents like photoshopped trademark registrations, NBFC licenses, and business permits displayed on official-looking websites.

According to the court’s findings, 66,800 Indians were defrauded of Rs 517 million between June 1, 2023, and January 13, 2024 – a span of just over seven months.

Perpetrators punished by court

The court said that the nine defendants, who sought illegal profits through false identities and cyber fraud tactics, created a sophisticated criminal syndicate. Based on their roles and hierarchy within the group, the defendants were sentenced to five to 14 years and nine months in prison, along with fines.

Presiding judge Liu Xilei said China has been intensifying its crackdown on online and telecom fraud. The perpetrators are urged to immediately stop criminal activities and voluntarily surrender to authorities for potential leniency.

(With inputs from agencies)