US$347,000 in Cash & 1.5kg Gold Recovered in Scam Targeting Chinese Students Abroad

Shanghai police seized more than 2.47 million yuan (US$347,000) and 1.5 kilograms of gold in a scam aimed at Chinese students abroad.

The victim was a 24-year-old student, surnamed Wang, studying abroad. She received a phone call on October 17 from someone claiming to represent the "Chinese embassy." The caller warned her that her identity had been fraudulently used in serious criminal offenses and that she was about to be arrested.

Two other people, claiming to be a police officer and a prosecutor, respectively, contacted Wang via FaceTime video calls. They promised to clear her name and prevent foreign police from arresting her if she cooperated with the investigation and paid a US$1 million "security deposit."

They also instructed her to download software, insisting it was necessary to verify her status "at any time during the investigation."

Wang took a flight back to Shanghai on November 2 and transferred a total of 3.47 million yuan in four installments into a "secure account" provided by the scammers on November 5.

After making the transfer, when Wang asked for the related legal documents, the suspects directed her to 655 Dingxiang Road in the Pudong New Area to collect them in person.

The address turned out to be the Pudong Branch of the Shanghai Public Security Bureau. Realizing she had fallen for a scam, Wang reported it to the police.

Pudong police found that the 3.47 million yuan that Wang had transferred had been shuffled through eight different accounts, with some funds used to purchase gold.

The police dispatched teams to various locations outside Shanghai to trace the funds. With help from local police, they tracked down the account holders and cut off the entire fund transfer chain, successfully freezing over 2.47 million yuan and recovering 1.5 kilograms of gold.

Investigations are still ongoing.

In July, Shanghai police initiated a citywide campaign to combat telecom fraud and busted more than 30 criminal gangs and arrested 280 suspects.

Police said 15 percent of telecom fraud victims are under 25, with the youngest being a 7-year-old pupil who sought free game-boosting services online.

The scams involved fake game transactions, fraudulent concert ticket sales, rebate schemes, and impersonation of law enforcement officials.

Part-time job scams are especially concerning, as many students are tricked into transferring money or unknowingly becoming accomplices in illegal activities like money laundering.

In Yangpu District, police uncovered a scheme masquerading as a part-time purchasing job, which involved the illicit acquisition of victims' bank accounts and money laundering.

The victim, Liu, was a recent university graduate. She was drawn in by an online ad promising high commissions for purchasing drones. The suspect claimed Liu only needed to open a new bank account and use a discount on a shopping platform to buy a drone and would earn a 350-yuan commission.

Bank staff noticed irregularities and reported to the police. The Yangpu police's anti-fraud taskforce launched an investigation and arrested a suspect surnamed Sun.

Sun confessed to using the "discount drone purchase" scheme to lure victims into providing bank card numbers, which were then used as accounts to transfer illicit funds for other scams.

Sun has been arrested on charges of concealing and disguising criminal proceeds.