“Over the past year, the country has cracked 394 thousand cases of telecommunications network fraud, and arrested 634 thousand suspect, up 28.5% and 76.6% respectively, hitting a record high.” Du Hangwei, Vice Minister of public security, introduced at the “press conference on the progress of combating and controlling telecom network fraud” held by the state information office on April 14.
The information released at the meeting showed that since June last year, the number of cases of telecom network fraud has decreased year-on-year for nine consecutive months, remarkable results have been achieved in combating governance, and the rising momentum has been effectively curbed.
In terms of the “capital chain” governance of the financial industry, in 2021, the number of bank accounts of units involved in fraud per month decreased by more than 90%, the amount of fraud involved in individual bank accounts decreased by 21.7%, and the ability of the financial system to identify and intercept funds increased significantly.
However, there have been some new changes and characteristics in the crime of telecom network fraud. It is reported that since last year, there have been a high number of cases of swindling people’s trust by swiping rebates and then draining them to false investment platforms. Fraud using false app has accounted for about 60% of all cases.
cracking down on the illegal crime of telecom network fraud has achieved remarkable results
Over the past year, all regions and departments have resolutely implemented the decision-making and deployment of the Party Central Committee, adhered to the people as the center, dealt a heavy blow and ruthless hand to the telecom network fraud crime deeply hated by the people, and deeply promoted the work of crackdown, prevention and control with unprecedented efforts and measures. The rising trend of telecom network fraud crime in recent years has been effectively curbed. Since June last year, the number of cases filed has decreased year-on-year for nine consecutive months, and remarkable results have been achieved in combating governance.
Du Hangwei introduced that the Ministry of public security organized the public security organs throughout the country to keep the hard hitting situation and to carry out special actions such as “cloud sword”, “the Great Wall”, “break card”, “break off”, “5.10” and so on. The overall command and command of the whole region were coordinated and the whole campaign was organized. 150 national cluster campaigns were organized and 394 thousand cases were cracked and 634 thousand suspect were arrested, representing an increase of 28.5% and 76.6% respectively, a record high.
telecom network fraud crime has four new changes and new features
However, Liu Zhongyi, director of the Criminal Investigation Bureau of the Ministry of public security, also said that over the past year, although the crackdown on telecommunications network fraud has achieved remarkable results and the rapid rise of cases has been effectively curbed, the crime situation is still severe and complex.
There are some new changes and characteristics in the crime of telecom network fraud. First, the new type of cyber crime has become the mainstream crime. Although such cases have shown a downward trend under the situation of severe crackdown and high pressure over the past year, the incidence is still running at a high level, and the situation is still severe and complex. At present, the incidence of telecom network fraud in the world’s major developed countries is also growing rapidly. Especially under the background of covid-19 epidemic, people’s production and life are accelerating to transfer to the Internet, further aggravating the high incidence of cases. Telecom network fraud crime has become a global problem of combating and governance.
Second, fraud accelerated iterative changes. Fraud groups keep up with social hot spots and change their fraud methods and “scripts” at any time. They are highly confusing and the people are easily deceived.
The public security organs have found more than 50 types of fraud, among which five main types of fraud are online scalping rebate, false investment and financial management, false online loan, impersonating customer service and impersonating public security law.
Since last year, there have been a high number of cases of swindling people’s trust through bill swiping and rebate, and then leading to false investment platforms for fraud, with more than 30% of the cases and losses, and major cases of swindled more than one million yuan have occurred from time to time.
Third, the fraud group continuously updated and upgraded its crime tools by using new technologies and new business forms such as blockchain, virtual currency, AI intelligence, goip, remote control and shared screen, and intensified and upgraded its offensive and defensive confrontation with the public security organs in terms of communication network, transfer and money laundering. From the perspective of communication network channels, the use of false app to commit fraud has accounted for 60% of all cases. A large number of second dialing, VPN, cloud voice calls and telephone cards, SMS platforms and communication lines of foreign operators have been used to commit fraud.
From the perspective of capital channel, a large number of money laundering using running sub platform and digital currency, especially using usdt (TEDA currency) is the most harmful.
Fourth, the characteristics of transnational organization are becoming more and more obvious. At present, in Cambodia, the Philippines, the United Arab Emirates, Turkey, northern Myanmar and other countries and regions, there are still a large number of criminal gangs carrying out fraud activities against our citizens.
will promote further efforts to return funds cheated by telecom network fraud
The “capital chain” governance of the financial industry is an important link in combating the crime of telecom network fraud. Wen Xinxiang, director of the payment and Settlement Department of the people’s Bank of China, introduced that in 2021, the ability of the financial system to identify and intercept funds increased significantly, and a large number of people were successfully avoided from being cheated. The average monthly number of bank accounts of fraud related units decreased by 92%, and the average amount of fraud related to individual bank accounts decreased by 21.7%.
Recently, the central bank held a video conference on payment and settlement in 2022, proposing to systematically promote the “capital chain” governance of cross-border gambling, telecom network fraud and illegal payment activities. Wen Xinxiang said that the “capital chain” governance has entered the “deep water area”. In the next step, the people’s Bank of China will organize the financial industry to implement the decisions and arrangements of the CPC Central Committee and the State Council with stricter requirements and higher standards, and guide commercial banks, Payment institutions and clearing institutions to fully implement the measures for the “capital chain” governance of the financial industry.
Wen Xinxiang said that commercial banks and Payment institutions should give full play to technical means such as big data and artificial intelligence to improve the accuracy of risk identification and interception. We will strengthen risk prevention in new areas such as virtual currency and intercept criminal funds in an all-round way.
According to Liu Zhongyi, the Ministry of public security, together with the China Banking and Insurance Regulatory Commission, formulated and promulgated the “Several Provisions on the return of frozen funds in new types of illegal and criminal cases in telecommunications networks” and the implementation rules, so as to return the frozen funds involved in the case with clear ownership and meeting the return conditions in a timely manner to the cheated people in accordance with the law. In 2021, public security organs across the country recovered and returned 12 billion yuan of funds cheated by the people.
However, the legal basis for the return of funds needs to be further improved, the return process needs to be further improved, and this work still faces many challenges. Liu Zhongyi said that in the next step, the Ministry of public security will work with the people’s Bank of China, the China Banking and Insurance Regulatory Commission, the legal working committee of the National People’s Congress, the Supreme People’s Procuratorate, the Supreme People’s court and other departments to improve laws and regulations, improve the risk monitoring mechanism, improve the early warning and interception ability, further strengthen the return of funds cheated by telecom network fraud, and effectively protect the people’s “money bags”.
