In the rapidly evolving landscape of the online world, telecommunications fraud has emerged as one of the most prevalent threats. This deceptive practice, utilizing network technologies to mislead individuals and exploit personal information, has swiftly evolved into one of the most substantial cybercrimes today. In China, a nation boasting over 1.05 billion internet users, this form of fraud is particularly rampant. Recent statistics unveil a disconcerting reality: from 2011 to 2015, the number of telecommunications fraud cases nationwide surged from 100,000 to approximately 600,000, with an annual growth rate exceeding 70%. While 256,000 cases of telecommunications fraud were reported in 2020, the actual occurrences behind the scenes far surpass this official figure. From impersonating official identities to orchestrating sophisticated phishing scams, fraudsters exploit the ubiquitous nature of telecommunications, turning it into a weapon against the unwary.

One prevalent form of telecommunications fraud is the “Romance Scam.” In this scheme, fraudsters utilize online dating platforms to lure victims to participate in investments, gambling, and other online activities. Chen Juan, a 36-year-old woman, fell victim to this type of scam in 2018. Through a social media platform, she encountered a stranger who identified himself as Zhang Jun. By using WeChat (one of China’s most commonly used social media apps), they gradually developed a relationship. “He knew what time I woke up; usually, I’d receive his ‘Good morning’ message right when I opened my eyes. Similarly, at night, it was a must to exchange ‘Good night’ messages before going to sleep – more punctual than clocking in at my job,” Chen recounted. As their connection deepened, Zhang persuaded Chen to capitalize on a loophole in a gambling app, and showed his apparent success. Under Zhang’s persistent persuasion, Chen transferred over 200,000 yuan (about 30,000 dollars) to the app. However, no soon after, Zhang disappeared, and the app became inaccessible. Chen realized the extent of the deception.

Beyond “Romance Scam,” fraudsters employ various tactics to target victims of different ages and genders. Individuals with higher education generally invest a significant amount of time in academics, leading to a prevalent strong emotional need among them. As a result, emotional manipulation becomes a common tool to the scammers. In the case of elderly individuals, scammers often capitalize on their limited digital literacy, posing as relatives or official entities over the phone, creating emergency situations that coerce them into transferring funds without due consideration. Meanwhile, for the younger generation, scammers exploit their  desire for quick wealth, fabricating seemingly genuine scenarios to lure them into participating in so-called ‘get-rich-quick’ schemes, ultimately robbing their victims of money. In 2020 alone, telecommunications fraud resulted in a staggering loss of 35.37 billion yuan, or roughly 5 billion dollars. These diverse fraudulent tactics not only inflict substantial financial losses on victims but also induce profound psychological trauma. In extreme cases, victims, unable to reconcile with the reality of being deceived, resort to desperate measures such as suicide. In 2016, a 44-year-old Chinese man by the name of Fan, having been swindled out of his entire life savings of 230,000 yuan, or 32,400 dollars, took his own life, leaving a poignant farewell note on a dust-covered windowsill, stating, “My death is related to the scammers.”

However, Chinese telecommunications fraud extends beyond victimizing individuals; it involves a significant number of people who unwittingly become part of these criminal enterprises. In Southeast Asia, over 100,000 individuals are engaged in telecommunications fraud. A considerable portion of them are individuals deceived into participating in these illicit activities. Fraud syndicates typically employ illicit means to acquire personal information and select suitable candidates for deception. Neo Lu, a 28-year-old Chinese office worker, was enticed by the promise of a translation job at an e-commerce company in Bangkok. However, upon arrival in Thailand last June, the person who met him at the airport escorted him to the Thai-Myanmar border, where he was handed over to a criminal syndicate operating in Myanmar. Instead of working in an envisioned office building in Bangkok, he found himself involved in luring others in what appeared to be a dilapidated “camp,” earning profits for the fraud group.

The victims not only fail to receive the satisfactory working environment promised by fraud syndicates, but they also endure various forms of violent abuse. Criminal organizations manipulate victims into believing they are already involved in criminal activities, warning that fleeing would result in imprisonment for illegal cross-border crime. They coerce victims into compliance, setting task objectives that induce them to complete assignments under duress. “They’d beat you, tase you with an electric baton if you didn’t complete your task,” recounts Ming, a young individual who escaped from a fraud den in 2021. Lu, upon realizing he had been deceived, reached an agreement with the syndicate’s managers, offering his accounting skills in exchange for freedom after working for six months. However, his living conditions were still far from what he anticipated – sharing a room with seven others, infested with bedbugs, emanating the stench of sewage. Yet, six months later, the fraudsters initiated violent punishments. Lu found himself “handcuffed to a bunk bed, released only for meals and bathroom breaks. A guard watched him at all times. His electronic devices were taken from him.” Furthermore, he endured slaps, PVC pipe beatings, and electric shocks from a stun gun. These victims do not merely lose their dignity and security; they are ensnared in the deceptive agreements of fraud syndicates, evolving into inextricable pawns subjected to ceaseless physical and emotional torment.

The operational structure of fraud syndicates is not much different from regular companies; they have various departments, department managers, higher-level managers, namely the leader. The only difference is that their profits entirely depend on the amount of money deceived from their scams. According to a New York Times article, the individuals who execute the scams working in the bottom, only receive 3-15% of the proceeds, while the managers may take around 30%, handing over the remaining amount to the leader. The total income from these scams adds up to a substantial sum, leading to an increasing number of people getting involved in this industry.

Reports indicate that there are hundreds of fraud camps in the vicinity of Moei Wadi on the Myanmar-Thailand border alone. If including fraud groups entrenched in parts of northern Myanmar, the total number of active camps will reach at least 1000. While these criminal organizations boldly engage in such illegal activities, dismantling a crime den entirely is an exceptionally challenging task for local and international law enforcement. When law enforcement officials from various countries attempted to rescue their nationals stranded in Cambodia, they found themselves obstructed by Cambodian authorities. An operation designed to rescue over 3000 people resulted in the successful rescue of only about 100 individuals. Behind this, many leaders of fraud syndicates possess influential networks, enabling them to promptly access law enforcement’s search information. Some even share profits with government officials, ensuring a “secure” criminal environment. In Cambodia, for instance, many fraud dens are situated within buildings owned by high-ranking government officials or local tycoons. Cambodian Prime Minister Hun Sen is also involved, providing cover for these operations to evade police investigations. His relatives and advisors manage numerous properties and economic zones under his protective umbrella, providing havens for cyber-scam operations and other illicit activities. Jason Tower, a China security expert from the United States Institute of Peace, notes, “protective zones are notorious for housing cyber-scam operations and other illicit activity, not only in Cambodia but across the region, particularly in Myanmar. You might even call it a ‘special criminal zone’ in that they’re providing a place beyond the rule of law.” All these activities contribute to the clandestine growth and expansion of fraud syndicates.

These seemingly distant events are, in reality, much closer to us than we might think. At any given time, we or our close friends and family could receive convincingly fabricated fraudulent messages, leading us to believe in their authenticity and resulting in the loss of property or even personal freedom. Understanding the impact of telecommunications fraud on our lives is the crucial first step in putting a stop to it. Fortunately, China has recognized the rampant nature of telecommunications fraud and has begun to introduce laws and measures to counteract it. In 2021, an app named “National Anti-Fraud Center” was launched. It assists users in receiving timely warnings when they encounter suspicious calls or messages related to fraud, facilitating the swift reporting of fraud-related leads. In 2022, the “Law of the People’s Republic of China on Countering Telecommunications Network Fraud” was enacted, specifically designed to combat and govern telecommunications fraud. The Ministry of Public Security is also actively seeking international cooperation to combat telecommunications fraud, hoping that one day criminals will be pursued and brought to justice, eliminating such cruelty from our midst.