Chinese Syndicate Sentenced for $6.2 Million Telecom Fraud Targeting Indians

A telecommunication fraud scheme targeting Indian victims resulted in prison sentences and fines for nine individuals in China. The scam, orchestrated through fabricated investment platforms and identities, defrauded 66,800 victims of 517 million Indian rupees (approximately $6.2 million). The scheme's leader, identified as a suspect surnamed He, was responsible for the romance scam aspect.

He established the fraud syndicate in May 2023 by renting office space in Heze, Shandong Province. He recruited members, acquired overseas servers, and managed the operation's logistics. His responsibilities included liaising with Indian companies, overseeing fund supervision, and diverting capital. Other members were tasked with training and managing the scammers, with experienced fraudsters developing communication strategies and coaching employees. Another individual, surnamed Chen, maintained the payment channels for the fraudulent investment platform.

The scammers lured victims with promises of high returns on investments. They used a chat app to connect with Indian individuals and entice them to invest in a platform. The promised returns ranged from 8 to 15 percent monthly on investments as low as 1,000 rupees ($12). Once deposits exceeded the promised returns, the team would shut down the platform or convert debts into equity to freeze funds. They then converted the investments into USDT cryptocurrency, exchanging it for RMB or USD while taking a 15 percent commission.

To enhance credibility, the gang created fake social media profiles featuring fabricated lifestyles, fitness, and travel photos, portraying successful yet emotionally vulnerable Indian women. They geo-tagged locations in Indian cities and engaged targets in relationship-building chats. The syndicate further legitimized their scam by creating counterfeit corporate documents, including photoshopped trademark registrations, NBFC licenses, and business permits displayed on official-looking websites.

The court found that between June 1, 2023, and January 13, 2024, the group defrauded 66,800 Indians of 517 million Indian rupees. The court stated that the nine defendants formed a sophisticated criminal syndicate marked by professional organization, precise division of tasks, and interdependent profit-sharing mechanisms. The defendants received prison sentences ranging from five years to 14 years and nine months, along with fines, based on their roles within the group. The presiding judge emphasized China's intensified crackdown on telecom and online fraud.