Why Chinese involvement in financial frauds in India is alarming

Photo for representational purpose

Within a span of 15 days, two major financial fraud cases involving Chinese nationals have come to the forefront. Soon after the Delhi Police unearthed a transnational malware and fraud syndicate and arrested two Chinese women in a gang of 12 in multiple raids starting January 13, two Chinese have been caught by the UP ATS from Noida for fraudulent monetary transactions.

This is cause for alarm as it raises apprehensions that multiple Chinese syndicates have been operating within the country to cheat and defraud Indian citizens and capture personal data of unsuspecting people for illegitimate purposes.

When it arrested Chinese nationals Chaohong Deng Daoyong , 27 and Wu Jiazhi, 54, the Delhi Police said the accused were installing malware in devices of people in the garb of a multi-level marketing application.

Police said that around 40,000 confirmed victims have been identified who have been cheated of crores in two months. Almost Rs 4.75 crore of cheated money has been blocked in various accounts and more than Rs. 25 lakh recovered in cash from the arrested Chinese nationals.

"The malicious app was also making millions of Indian users follow thousands of social media accounts of unknown origin and ownership, with huge potential of future misuse of this by a foreign entity," said Anyesh Roy, DCP Crime Crime.

Now the Uttar Pradesh Anti-Terror Squad (UPATS) has arrested Xu Xunfu a.k.a July and Li Teng Li a.k.a Alice from Gautam Buddha Nagar, following a red corner notice against them by the Interpol.

Additional Director General (law and order) Prashant Kumar said, "The UPATS arrested the two for purchasing SIM cards by submitting forged documents and then making fraudulent monetary transactions with those SIMs via banks. It is for the first time that the ATS has arrested Chinese nationals."

He further said, "We traced the duo after interrogating 14 persons arrested last week from Delhi and different parts of Uttar Pradesh in a similar fraud."

GK Goswami Inspector General ATS said Xu Xunfu's business visa had expired in July 2020, while Li Teng Li's tourist visa expired in September 2020.

The Delhi Police have also hinted two Chinese nationals Yangqing Zhang and Bao Peng , are the kingpins of this criminal conspiracy to cheat and defraud Indian citizens and hack into their devices through malicious mobile applications. This is a serious concern as kingpins of Chinese origin are hatching the conspiracy from locations outside India

Not just financial frauds but alleged Chinese involvement have also been claimed by Delhi police in a spying case as on September 14 last year, the Special Cell of the Delhi Police had arrested 61-year-old freelance journalist Rajeev Sharma, for allegedly working with Chinese intelligence.

During Sharma's police remand, a Chinese woman Qing Shi and her Nepalese partner Sher Singh alias Raj Bohra were also arrested. They were allegedly found supplying the scribe with huge amounts of money routed through hawala channels for conveying sensitive information to Chinese Intelligence, DCP Special Cell Sanjeev Yadav had said.

This is why the Indian Police force in a coordinated manner is keeping extra vigil on the working of these fraudster syndicates involving Chinese nationals.

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