In China, there are concerns that criminals are increasingly using blockchain, cryptocurrency and artificial intelligence (AI) to commit fraud.
The Ministry of Public Security held a press conference on January 10 and announced that more than 53,000 Chinese nationals involved in telecommunications fraud have been arrested in northern Myanmar by the end of 2024. These efforts led to the dismantlement of the notorious ‘Four Big Families’ crime syndicate in Myanmar’s northern Kokang region.
China engages in cross-border virtual fraud
Despite these significant achievements, the Ministry of Defense warned that the overall crime situation remains serious. Fraud groups are constantly evolving, incorporating advanced technologies such as blockchain, virtual currency, and artificial intelligence into their operations. According to local media reports, these well-organized criminal groups use cross-border networks to conduct illicit activities, including app development, traffic facilitation, and money laundering.
These criminals are adept at personalizing their scams by targeting people based on their age, occupation, and education level. As a result, a wide range of individuals fall victim to these schemes. Despite the closure of a large e-fraud hub near the China-Myanmar border in northern Myanmar, many fraud networks are still operating offshore, often disguised as ‘tech parks’ or ‘development zones’.
According to local media reports, more than 53,000 Chinese fraud suspects have been arrested by the end of 2024. Additionally, the ‘Four Big Families’ of northern Myanmar have been completely disbanded and all significant e-fraud activities near the border have been eradicated. These joint efforts have resulted in a significant reduction in registered telecom fraud cases and related financial losses across China.
Local reports have concluded that despite improvements in the response to fraud in northern Myanmar, so-called ‘technology parks’ and ‘development zones’ abroad are still operating, providing ‘hubs’ for telecom fraud.
Also read: China theft: Man accused of stealing 1.6 million yuan worth of cryptocurrency