In a recent press conference held on October 25, the Ministry of Public Security announced the outcomes of a nationwide effort to combat fraud related to the so-called “ethnic asset unfreezing” schemes. Chen Shiqu, Deputy Director of the Criminal Investigation Bureau, disclosed that since the initiative was launched in February of this year, law enforcement has successfully cracked 574 related cases, dismantled 247 crime rings, and apprehended 4,385 suspects, uncovering a staggering 12.95 billion yuan involved in these scams.

Chen explained that “ethnic asset unfreezing fraud” serves as an umbrella term for a type of scam that typically involves false claims about overseas ethnic assets that require a fee to be released. Victims are often lured into investing large sums of money under the promise of substantial returns. These scams not only span wide geographic areas and involve many individuals but also represent a significant threat to the financial rights of the public and undermine government credibility. Recently, the tactics employed by these criminals have evolved; they now fabricate fictitious national projects using government policies as a front. These fraudsters create false documents and signatures while promoting projects labeled with lofty names such as “Dream Fulfillment Initiative” and “Common Prosperity in China.” This results in massive numbers of victims being tricked into online agreements, product purchases, and various forms of payments, all under the guise of investment or registration fees.

Chen also noted that the nature of these scams often suggests low investments with high returns, resembling tactics typically seen in telecommunications fraud. Criminals have even developed scam applications to recruit members, often hiding the masterminds and operational bases overseas. Communication channels and financial transactions are obscured online, presenting a serious threat.

To counter the growing prevalence of ethnic asset unfreezing fraud, the Ministry of Public Security launched this special crackdown in February. To date, they have made significant strides, including the classification and close monitoring of 26 key cases, including those related to “Common Prosperity in China.” The Ministry is dedicated to thoroughly investigating the organizational structures of these crime rings, as well as identifying their financial backers and key operatives. They are also taking vigorous action against related activities such as the development and promotion of scam apps and money laundering operations, ensuring a comprehensive approach to tackling the issue.

Chen provided updates on notable operations by local police departments, highlighting cases where substantial results were achieved. For example, Jilin police dismantled a multinational fraud organization linked to the “Welfare China” scheme and arrested over 400 suspects. In another operation, Anhui police uncovered a fraudulent group using the guise of the State Council to dispatch scam flyers, leading to the arrest of 65 individuals and the destruction of one domestic criminal hub. Zhejiang’s police also made significant arrests in connection with the “China International Plum Blossom Association” fraud, catching 212 suspects and seizing over 58 million yuan in illicit funds.

Looking ahead, Chen indicated that the Ministry will continue to strengthen its nationwide operations, focusing on targeted crackdowns and remediation in high-risk areas, to uphold the legal rights of the public and combat ethnic asset unfreezing fraud effectively.