A Chinese court has sentenced nine individuals to prison for running an online telecom scam targeting Indian citizens. The cybercriminals stole around ₹51.7 crore (nearly $6.2 million) from 66,800 Indians via fake investment platforms and social engineering.
According to a Global Times report, the team created fake social media profiles impersonating wealthy women. The profiles were then used to lure men and gain their trust over time. One accused, identified by her surname Li, claimed that she used fake photos showing off luxury lifestyles on her profile, tagging them with Indian locations to make the profile seem genuine.
Once a strong bond was formed, the scammers introduced Senee, a fake investment platform promising 8% to 15% monthly returns on investments starting as low as ₹1,000 (~$12). To make the entire venture look real, fake company documents, including NBFC licenses and permits, were also created using Photoshop.
Instead of offering returns like a network marketing or Ponzi scheme, the scammers promised clear returns. As the number of investors grew, the platform was shut down to stop investors from withdrawing their money. Some investors were even told that their investments had been turned into equity.
The scam ran in an extremely organised manner. The operation’s mastermind set up an office in Heze, Shandong Province, hired a team, set up his digital infrastructure on overseas servers, and even coordinated with Indian companies to facilitate money transfers. Every member of the group had a clear role, from training recruits to creating fake documents to overseeing money transfers.
An unnamed third-party service was used to convert the scammed Indian currency into USDT, a cryptocurrency. This third-party service converted the crypto into Chinese Yuan or the US dollar, taking a 15% cut.
The scam ran for seven months between June 2023 and January 2024. Suspects have been sentenced based on their involvement in the scam and their hierarchy within the group. The sentences range from five to 14 years and nine months, in addition to fines.
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