China: Criminals Committing Frauds Using Blockchain, Crypto, AI

China has raised concerns about criminals increasingly using blockchain, crypto, and artificial intelligence (AI) to commit fraud.

The Ministry of Public Security held a press conference on January 10, revealing that by the end of 2024, over 53,000 Chinese individuals connected to telecommunications fraud in northern Myanmar had been arrested. This effort led to the dismantling of the notorious “Four Major Families” criminal organization in the Kokang region of northern Myanmar.

Despite these significant achievements, the Ministry warned that the overall crime situation remains critical. Fraud groups are continually evolving, integrating advanced technologies such as blockchain, virtual currencies, and artificial intelligence into their operations. As per local media reports, these well-organized criminal groups are engaging in illegal activities like app development, traffic promotion, and money laundering through cross-border networks.

These criminals have become skilled at personalizing their scams, targeting people based on their age, occupation, and education. As a result, a wide range of individuals fall victim to these schemes. Although the large-scale electronic fraud hubs near the China-Myanmar border in northern Myanmar have been shut down, many fraud networks still operate abroad, often disguised as “technology parks” or “development zones.”

Local media reports indicate that, by the end of 2024, over 53,000 Chinese fraud suspects had been arrested. Additionally, the “Four Major Families” in northern Myanmar have been entirely dismantled, and all significant electronic fraud operations near the border have been eradicated. This coordinated effort has resulted in a noticeable decrease in registered telecommunications fraud cases and related financial losses across China.

The local reports have concluded that although improvements have been made in tackling fraud in northern Myanmar, numerous so-called “technology parks” and “development zones” remain operational overseas, providing a ‘hub’ for telecom fraud.

Also Read: China Theft: Man Prosecuted for Stealing Crypto Worth 1.6 Million Yuan

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