Source: Federal Bureau of Investigation FBI Crime News (b)
The scheme consists of four phases:
Phase 1: Initial Contact — U.S. Business or Chinese Embassy or Consulate Impostor
Criminals call their victims to discuss a minor problem such as an outstanding credit card balance, undeliverable package, or unpaid bill. They use technology to disguise or “spoof” their true telephone numbers, calling victims from phone numbers that appear to belong to U.S. businesses or Chinese Embassies or Consulates.
Phase 2: Scare Tactics — Chinese Police Impostor
The caller transfers the victim to another fraudster who poses as a law enforcement official from China. This impostor tells the victim the details of the alleged crime and provides fraudulent documentation, such as an arrest warrant. At this point, criminals may pressure victims to return to China to face trial or threaten to arrest them.
Phase 3: Surveillance of Victims
Criminals force victims to consent to 24/7 audio and video monitoring. They tell victims not to discuss the case or conduct Internet searches. Scammers may also try to recruit victims to participate in investigations of other subjects. They may ask victims to take photos or videos of other victims or to receive cryptocurrency or wire transfers.
Phase 4: Final Act — Extortion of Victims
In the last phase, criminals direct victims to wire money to a Chinese bank account to prove their innocence or to post bail to avoid having to return to China. They may provide scripts for victims to follow when they go to the bank. In some cases, the scammers order victims to lie to friends and family to secure more money. They may also force victims to serve as money mules or facilitate similar criminal schemes against others.
Protecting Yourself
- If an unknown person contacts you to accuse you of a crime, do not share personal or financial information, and do not send money. Cease contact with the person.
- Contact from a seemingly official phone number is not proof of official action. Criminals can use technology to mask or “spoof” telephone numbers.
- If a U.S. government agency contacts you, you can verify whether the contact is official. Use public sources (phone book, internet, etc.) to identify the government agency’s contact information. Contact the agency to confirm the legitimacy of the interaction.
- Do not consent to 24/7 audio or video monitoring.
- If someone claiming to be a Chinese authority contacts you, contact your local FBI office. Foreign government officials conducting legitimate law enforcement activity in the U.S. must act in coordination with U.S. federal authorities.
Victims should report fraudulent or suspicious activities to the FBI’s Internet Crime Complaint Center via ic3.gov. Report as much transaction information as possible, such as wire instructions, wallet addresses, telephone numbers, and text or email communications.
In addition, the FBI recommends taking the following actions:
- If you have already transferred money, contact your financial institution immediately to stop or reverse the transaction. Ask the financial institution to contact the corresponding financial institution where the funds were sent.
- Report activity to your campus security or public safety office to raise awareness among students.
Resources
For more information on similar scams, please see these previous public service announcements: