China’s recent pyramid scheme raid led to the arrest of more than 1,000 people who are suspected of being connected to a scam worth 360 million yuan ($54.7 million).
Beihai Municipal Committee secretary Wang Naixue once mentioned that he wouldn’t rest until all cases of pyramid schemes in the city are “eradicated.”
It seems that Naixue was indeed serious in addressing the issue after 2,100 armed police officers were dispatched to raid 300 properties in Beihai. The age of the suspects range from young professionals in their 20s to seniors in their 80s.
According to South China Morning Post, shady companies involved in pyramid schemes are often disguised as employment agencies and mostly target young job seekers and unemployed graduates. While numerous raids have helped unearth these illegal investment scams, experts believe that some still remain at large due to “greed and financial ignorance.”
Beihai is teeming with these scams and about 58,000 people have already been arrested for having ties to pyramid schemes within the past three years.
Meanwhile, China also became part of a separate raid in what’s being regarded as the biggest internet scam crackdown. According to Straits Times, 200 Chinese people were arrested by the Cambodian police for their involvement in an online blackmailing scam.
Cambodian authorities revealed that such cases are becoming a regular occurrence, but admitted that the recent one was bigger than the last. Authorities explained that Cambodia has attracted these fraudsters due to the country’s seemingly lax police force and their inexpensive internet.
Featured Image Screenshot via YouTube / CCTV+