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China-Oriented Blockchain AI Utilized to Combat Telecom Fraud

China’s Central Commission stresses a comprehensive strategy to combat international telecom fraud, addressing growing concerns over organized criminal groups exploiting technological advances for fraudulent activities.

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Key Points

  • China’s Central Political and Legal Affairs Commission highlights fight against overseas telecom fraud.
  • Rising concern over fraudulent groups tricking individuals into criminal activities under false job offers.
  • Commission notes organized crime traits, demands international cooperation, and technological adaptation.
  • China combats crypto-related crimes, as seen in recent Tether money laundering cases.

China’s Central Political and Legal Affairs Commission has recently emphasized the importance of a systematic, legal, and source-based approach to combat overseas telecom network fraud and related criminal activities. The announcement was made on August 6, 2023, as reported by the Economic Daily.

Overseas Telecom Fraud: A Growing Concern

Over the past few years, there has been a growing concern regarding overseas telecom network fraud groups. These fraud groups lure ordinary individuals into fraudulent activities under the pretense of “high-paying job recruitment.”

This has resulted in violent detentions, human trafficking, and the establishment of dark industrial chains that significantly harm people’s lives and property.

The commission acknowledges the diversity and ruthlessness of fraudulent methods used by these groups, as well as the enormous amounts of money defrauded.

These factors have sparked public outrage, leading the commission to emphasize the importance of protecting the people’s vital interests and upholding social decency and the rule of law.

Organized Crime Features

The overseas telecom network fraud groups exhibit characteristics of tight organization, clear division of labor, multi-industry support, industrial distribution, group operation, and refined division of labor.

This necessitates increased international law enforcement cooperation and joint efforts with other countries to eliminate fraud dens, rescue trapped individuals, and bring the organizers and criminal forces to justice.

Utilizing New Technologies for Fraud

The commission recognizes that fraud groups are utilizing new technologies such as blockchain, metaverse, virtual currency, and AI intelligence to continuously update their criminal tools, making them more concealed and confusing.

To address this, coordination between public security, finance, telecommunications, and internet departments is required to apply advanced technological means and fulfill regulatory responsibilities.

Efforts are already underway to compress the online crime space, conduct concentrated investigations into high-risk telephone and bank cards associated with fraud, eliminate associated internet accounts, and ensure smooth network reporting channels.

Furthermore, thorough investigations are being conducted into domestic criminal gangs colluding with overseas entities, with a focus on disrupting smuggling channels.

It is noteworthy that China has been witnessing an increase in crimes related to crypto, blockchain, NFT, and the metaverse.

On July 18, 2023, Chinese authorities successfully cracked a money laundering case involving the cryptocurrency Tether (USDT) in Qingshui County, Shanxi Province. This operation led to the arrest of 21 suspects and the confiscation of cash and USDT worth over 1 million yuan.

The investigation uncovered a complex network across four provinces and six cities that used USDT to launder money for cybercriminals. This criminal group facilitated payments amounting to over 54.8 million USDT, equivalent to about 380 million yuan.

In another case in Inner Mongolia in December 2022, 63 suspects were arrested for laundering money with USDT, totaling 12 billion yuan.

Concluding Thoughts

The public security and judicial departments are urged to strengthen publicity and education efforts to enhance people’s awareness and ability to identify and prevent telecom network fraud.

Special attention is being given to young people entering society, guiding them to be vigilant against opportunistic psychology and herd mentality, and encouraging them to seek a solid footing in serving society.

Overall, the Central Political and Legal Affairs Commission’s emphasis on a systematic approach demonstrates China’s commitment to combating overseas telecom network fraud and protecting its citizens from the increasing threats posed by fraud groups utilizing new technologies.