As the stock market rises, some criminals are plotting illegal schemes.
Liaoning Dalian: Elderly Man Nearly Loses 200,000 Yuan to “Investment Guru” Before Police Intervention
Recently, the anti-fraud center of the Wafangdian City Public Security Bureau in Dalian, Liaoning, received a bank alert. An elderly man was preparing to transfer 200,000 yuan to a personal account. When bank staff asked about the purpose of the transfer, the man hesitated and couldn’t provide a clear answer. Police immediately arrived at the scene.
Officers learned that the man had recently met someone online claiming to be an “investment guru.” Under their guidance, he downloaded what appeared to be a professional investment app. The fraudster promised guaranteed returns by purchasing “original shares” after transferring money. Police confirmed this was a classic fake investment scam.
After officers explained common fraud tactics and shared real cases, the man realized the deception and canceled the transfer.
Multiple Brokerages Warn of Impersonation Scams, Urging Investor Caution
This incident is far from isolated. As market activity increases, illegal securities schemes have resurged, prompting multiple brokerages to issue warnings.
Many investors have reported encountering fake trading apps on social platforms. Scammers posing as brokerage representatives contact victims through social media, recommend fraudulent apps, and solicit investments. Some victims claim losses exceeding 300,000 yuan. Over 10 major brokerages, including Galaxy Securities and GF Securities, have recently published notices exposing these impersonation schemes that have already caused significant financial harm.
These are essentially traditional scams disguised as investment opportunities. Criminals fabricate false securities information, exploit investors’ desire for quick profits, and ultimately abscond with the funds.
Scammers commonly use fake trading apps alongside other tactics like fraudulent stock tips, illegal chat groups, and forged regulatory documents. They may steal employee credentials, forge company seals, and fabricate transaction records to appear legitimate. In response, brokerages have published official verification channels, warning investors to verify institutional credentials, avoid transferring funds to personal accounts, and understand legal recourse options. Legal experts note that recovering losses in such cases is often difficult, making prevention critical.
Investors should be wary of exaggerated claims. Any offer promising “profit-sharing percentages” or requiring “service fees for withdrawals” constitutes illegal activity. Requests to transfer funds to designated accounts under the guise of “regulatory avoidance” are always fraudulent. Victims should preserve all evidence including chat logs, call recordings, transaction screenshots, transfer records, and fake contracts, then report to local authorities immediately.
