Cyber Security

China Regulator Cracks Down on Online Investment Fraud

 

China’s cyber-security regulator said on Friday it has investigated at least 42,000 fraudulent investment apps this year during a crackdown.

The Cyberspace Administration of China (CAC) said the apps have been incorporated into the national fraud-related database, according to a statement on its website.

CAC said it had amassed a fraud database of 3.8 million websites and 500,000 apps. It did not specify if any are still operating or elaborate on any penalties issued.

The cyber-security regulator said it found multiple cases involving website spoofing as scammers created fraudulent investment platforms by mimicking some popular tech companies including JD Finance, the fintech arm of e-commerce giant JD.com.

The CAC listed seven cases where internet users had lost between 10,000 yuan and 400,000 yuan to fake investment platforms.

The regulator said the fraudsters attract investors by offering “small rebates”, then embezzle their funds. Some fraudulent platforms even claim to be state-owned enterprises, CAC said.

“App stores and other platforms should also strengthen the cyber-security scrutiny of app downloads to prevent fake apps from phishing in troubled waters to harm internet users,” the regulator said.

 

  • George Russell

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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