Beijing police target phone swindle gangs

Source: Xinhua  |   2008-12-8  |     NEWSPAPER EDITION

BEIJING police yesterday launched a 50-day crack-down on a fraudulent scheme that has led to people handing over bank deposits to swindlers claiming to be police or telecom employees.

Police in Xuanwu District of Beijing alone received 26 reports of such scams, involving 1.5 million yuan (US$219,000), since the second half of October, said district police officer Zhang Yue.

One victim lost 400,000 yuan, Zhang added.

Typically a victim is phoned and told their phone bill is overdue. The caller says this happened as a result of a data breach and their bank accounts need to be encrypted.

Gullible residents have been lured to ATMs where they transfer money to accounts suggested by the con men.

A team of Beijing police went to Guangzhou and Zhuhai cities in Guangdong Province, where many of the fraudulent calls originated, to investigate. They broke up one gang and detained nine suspects, who confessed to more than 40 cases in Beijing.

Police will work with banks and telecom providers to locate suspects.