Another listed company suffered from Telecom fraud.
Recently, Dare Power Dekor Home Co.Ltd(000910) ( Dare Power Dekor Home Co.Ltd(000910) ) released the annual performance report of 2021, and the company achieved a revenue of 8.75 billion yuan, a year-on-year increase of 20.46%; The net profit attributable to shareholders of listed companies was 595 million yuan, a year-on-year decrease of 4.86%.
It is worth noting that the company also disclosed that its wholly-owned subsidiary suffered telecommunications fraud, involving an amount of about US $3.569 million (equivalent to RMB 227549 million), and the possibility of recovery is low.
Dare Power Dekor Home Co.Ltd(000910) company cheated 22.75 million
Dare Power Dekor Home Co.Ltd(000910) announcement indicates that during the reporting period of 2021, homelegend LLC, a subsidiary of Shengxiang Group Co., Ltd., a wholly-owned subsidiary of the company, became the victim of a telecommunications fraud. The perpetrator invaded the 365 email system of Microsoft company rented by the company, forged fake email, pretended to be a member of the management of the company, forged supplier documents and email paths, and committed fraud, The amount involved is about US $3.569 million (equivalent to RMB 227549 million).
The company has filed with local federal law enforcement authorities in the United States and reported the case to Chinese public security organs Dare Power Dekor Home Co.Ltd(000910) said that as of the reporting date, the possibility of recovering stolen funds was low.
The annual report shows that at present, the loss has been included in the “other” item of non operating expenditure.
Dare Power Dekor Home Co.Ltd(000910) is mainly engaged in the production and sales of flooring and wood-based panels. The company once said on the investor interaction platform that the market share of the company’s wood flooring ranks first in the industry. In 2021, the company’s floor sales volume was 62.89 million square meters, known as the “king of flooring”. In 2021, the company’s revenue was 8.75 billion yuan, a year-on-year increase of 20.46%; The net profit attributable to shareholders of listed companies was 595 million yuan, a year-on-year decrease of 4.86%; The net profit deducted attributable to shareholders of listed companies was 557 million yuan, a year-on-year decrease of 7.04%.
listed companies encounter Telecom scams occasionally
It is not an isolated case that listed companies encounter Telecom scams. According to the reporter’s incomplete sorting:
On November 5, 2020, Suzhou Slac Precision Equipment Co.Ltd(300382) ( Suzhou Slac Precision Equipment Co.Ltd(300382) ) announced that its wholly-owned subsidiary, Hong Kong Suzhou Slac Precision Equipment Co.Ltd(300382) had recently been defrauded by criminal gangs through telecommunications, resulting in more than 2.05 million US dollars (about 13 million yuan) in the bank account being defrauded through the Internet. After the incident, the company has reported the case to the public security organ and received the “receipt of case” issued by the public security organ on November 4, 2020. At present, the public security organ is actively investigating.
On March 31, 2022, Suzhou Slac Precision Equipment Co.Ltd(300382) disclosed in the annual report that the current progress of the case is as follows:
The above-mentioned sum of USD 205303650 has been remitted to the account opened by the fraudster in Kiev, Ukraine;
The company has been sued by the Ukrainian lawyer to the Kiev commercial court for the recovery of USD 205303650. At present, the case is under trial;
The lawyer representing Ukraine applied to the court for the seizure of the relevant funds in the above account in December 2020, and the court also issued the seizure ruling. After investigation, there are 5824689480 hryvna and 36.50 USD in the account, which has been detained according to the ruling of case No. 757 / 54607 / 20-k made by the regional court of Kivu pecesc on December 10, 2020. The seized funds in the account are equivalent to the funds cheated by Suzhou Slac Precision Equipment Co.Ltd(300382) Hong Kong.
After consulting lawyers, the company believes that there is a great possibility to recover the above funds through legal channels, but it may take a long time.
On June 23, 2020, Metro Land Corporation Ltd(600683) ( Metro Land Corporation Ltd(600683) ) announced that the company received a 50% holding subsidiary of Beijing Jingtou Yintai real estate, which is operated by the partner, and its financial personnel were cheated by criminal gangs through telecommunications, resulting in 26.7 million yuan in the bank account of Yintai real estate being cheated through the Internet on June 22, 2020. If calculated according to the net profit realized in 2019, the 26.7 million yuan cheated by the company this time is about six times its net profit in 2019.
On April 12, 2021, Metro Land Corporation Ltd(600683) released the internal control evaluation report for 2020, which indicated that 5 million yuan had been recovered.
how are listed companies defrauded
It is not difficult to see from the above cases that the amount of fraud is as high as millions or tens of millions. Such a huge amount of money should be approved at all levels within the company according to the rules and pass various financial audits. How can it be said that it will be transferred? Therefore, some people in the industry said frankly that the telecommunications fraud suffered by the listed company also reflects the imperfect financial process of the listed company and the non-standard and unprofessional internal management of the company to a certain extent.
Then, when a listed company encounters Telecom fraud, how can millions and tens of millions of funds be easily transferred? On July 17, 2021, Jiangxi Selon Industrial Co.Ltd(002748) ( Jiangxi Selon Industrial Co.Ltd(002748) ) disclosed in detail the process of being cheated in response to the inquiry of the exchange.
On the morning of May 8, 2020, Yang Dongfeng (hereinafter referred to as “Yang”), an employee of the company’s comprehensive management department, received an email instruction named “Zhang Haiqing” (the name of the company’s general manager), asking him to establish an internal working group and pull the financial person in charge into the group. Without distinguishing the true from the false, Yang built the group according to his instructions and pulled Deng into the newly-built QQ working group. There were only three people in the group.
“Zhang Haiqing” began to say to Deng in the group: “there is a deposit of 980000 to be paid today. Check whether the basic account of ICBC has received it”. Deng replied that “ICBC has not yet received the account record”, and “Zhang” said, “you can contact Xu Binghong 15608818278 and ask him whether the contract deposit has been paid. If not, don’t pay for the time being and ask him to pay the deposit after I modify the contract”, After contacting Xu Binghong, Deng replied, “I’ve been contacted. Xu said he transferred the money to your personal account ten minutes ago.” Zhang said, “I didn’t pay attention to the meeting. I’ve received the money and he has entered it into my private account. You can contact president Xu now. I need to modify the contract, return the deposit to him first, and call again after the contract is modified. You arrange to return 980000 yuan from the company’s account, and I’ll remit it to the company’s account after the meeting is over”, “Zhang” then gave Deng “Xu Binghong” the account number. Deng had no sense of discrimination and judgment at that time. Without the approval of the company’s leaders and the implementation of the financial payment process, he and cashier Zhan bin transferred 980000 yuan of the company’s Bank funds through online banking.
More than ten minutes later, “Zhang” in the group said, “president Xu may not have communicated clearly with their accountant. His accountant thought that the contract was signed successfully and called me the balance of RMB 2 million. You can arrange to return the money from the company. Tomorrow I will transfer RMB 2.98 million back to the company. Before the contract was signed, I will leave a good impression on the other party”. Therefore, Deng didn’t ask for instructions from the leader, ignored the provisions of the company’s financial system and made his own opinion in private, Another 2 million yuan was remitted from the company’s account, with a total payment of 2.98 million yuan to the “Xu Binghong” account.
On that day, Deng never suspected that he had encountered fraud, nor reported it to the chief financial officer and general manager of the company. Until about 9:30 pm, Yang Dongfeng began to question the chat records in the QQ group and called to remind Deng Jingyun. Deng was alert and called President Zhang at about 10 o’clock to verify whether there was such a thing. After receiving the call, president Zhang realized that Deng might be cheated, and then asked the chief financial officer whether President Hu knew about it? Hu didn’t know. Zhang then informed general manager song and general manager Zeng of the company, and arranged the head of the security department to lead the personnel to report the case to Xing Investigation Brigade of Leping Public Security Bureau in Jiangxi Province. At the same time, general manager Hu also informed ABC to freeze the “Xu Binghong” account, but the money had already been withdrawn.
Jiangxi Selon Industrial Co.Ltd(002748) said that the “Telecom fraud” of the company occurred mainly because the finance minister ignored the company’s internal control management system, had a numb mind, weak awareness of security, and was too obedient to the authority of the company’s main leaders. At the same time, the cashier blindly implemented the instructions of their direct leaders out of the usual trust and dignity of the department leaders and the requirements of the company’s internal control management system, The company suffered huge losses. At the same time, in the daily supervision, the CFO has insufficient internal control system and risk prevention education for the personnel in charge of the Department, and the fraudsters have an opportunity to take advantage of it.
cheat prevention “secret script”
In recent years, there has been a high incidence of telecom network fraud. A large number of fraudulent funds have been transferred overseas, and even if the person is caught, it is difficult to recover the loss. For example, the cheated funds of Suzhou Slac Precision Equipment Co.Ltd(300382) have gone to Ukraine and Jiangxi Selon Industrial Co.Ltd(002748) have gone to Myanmar. According to the Supreme People’s Procuratorate, from 2019 to 2021, procuratorial organs prosecuted 39000, 50000 and 40000 telecom network fraud crimes respectively. In terms of the number of cases, the overall crime of telecom network fraud is still running at a high level.
According to public data, at present, the criminal police situation of Telecom fraud has accounted for 46% of the total criminal police situation, and most cities have exceeded 50%, becoming the largest type of crime in China. Compared with the occasional fraud of listed companies, the fraud around us is pervasive and impossible to prevent.
So how to avoid being cheated? The purpose of swindlers is to defraud money, and ultimately to defraud money by means of transfer. Therefore, no matter how tricky and threatening the swindlers are, we must remember to “don’t listen, don’t believe, don’t transfer or don’t remit”. If you have any questions, call 110 directly for consultation or alarm. In addition, the “national anti fraud center” app developed by the Ministry of public security can be installed to warn Telecom fraud.
The following are the 9 anti fraud “secrets” summarized by the China Internet Association:
1. Don’t click the links in the SMS
Although there are also secure links sent by banks and other institutions in mobile phone text messages, many users are difficult to distinguish the authenticity through the other party’s text message number, text message content and link form. Therefore, it is recommended that users try not to click on any link contained in the text messages. Especially for Android mobile phone users, it is more important to prevent Trojan viruses.
2. Don’t give anyone the “verification code”
The “SMS verification code” sent by banks and Alipay is extremely hidden privacy information, and usually automatically expires in a few minutes, so do not disclose this information to anyone and organizations.
3. The mobile phone doesn’t show the number, don’t answer
At present, except for a few special departments that also have “no display number” phones, no government, enterprise, bank, operator and other institutions have “no display number” phones, so if you see “no display number” calls again in the future, just hang up.
4. Keep quiet about card number and password
In the dialogue, we never mention the bank card numbers, passwords, ID number, medical insurance card numbers and other information so as not to be exploited by fraudsters.
5. Money can only come in but not out
Any behavior that requires you to make money or remit money yourself must be careful. The police suggest that if you need to make money, you can go to the offline bank counter. If you have doubts, you can consult the bank counter staff.
6. Don’t trust strange evidence
Due to the proliferation of personal privacy disclosure, fraudsters often grasp some personal information of users and use it as evidence to cheat users’ trust. At this time, remember how long it takes – never trust strangers easily, even friends and family, if they are only online.
7. Beware of phishing websites
We must not trust as like as two peas of the official website. We can get the money from the virus without saying anything. So, when we log on to banks and other important websites, we should develop the habit of checking the domain name and website of the website.
8. Pay attention to new things
Fraudsters often use the latest hot spots of current affairs to design scams, such as real estate tax rebates and popular TV programs, which are often used by fraudsters. If you mention something new in an unknown phone call that you have never been exposed to, don’t take it seriously.
9. Call 110 if you are not sure
The police are not allowed to call 110 when it’s really necessary, but it’s still the most reliable way to consult.
