Scammers are posing as Chinese police in an effort to harass and intimidate Chinese students in Australia to hand over money.
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The National Anti-Scam Centre warned that there has been a total of 1,244 reports and $8.7 million in losses attributed to the scam since the beginning of the year.
Reports of the scam more than doubled in August compared with previous months.
"We are very concerned by the rising number of reports we have had from Chinese students, who are understandably terrified by the threatening nature of these scams," ACCC deputy chair Catriona Lowe said.
How it works
Scammers impersonate financial institutions or phone companies and call victims, accusing them of being involved in a serious financial crime.
When the victim says that they are not involved they are transferred to another scammer pretending to be the Chinese police.
The number seen on caller ID during the transfer will appear as an official police phone number with scammers using telephone spoofing technology.
Victims are threatened with extradition or deportation to China, unless they pay a sum to stay in Australia while the "investigation" takes place.
In one case, a young man paid more than $400,000 to scammers after he was told he would be arrested. He was also told he was under surveillance and was instructed to have Facetime open 24 hours a day.
![More than $8 million has been lost to the scam. Picture by Shutterstock More than $8 million has been lost to the scam. Picture by Shutterstock](/images/transform/v1/crop/frm/190143465/34d4cd69-b0f8-4155-9290-68586056e45e.jpg/r0_107_3711_2193_w1200_h678_fmax.jpg)
Intrusive surveillance tactics
The ACCC said many of the victims were monitored 24 hours a day using messaging platforms and device video technology.
The sophisticated scammers use technology to create fake documentation including arrest warrants. There was even a report of a person dressed as a police officer visiting the Australian homes of the victims to deliver documentation.
"Scammers are using deplorable tactics to scare their young victims into handing over their money and providing their personal information," Ms Lowe of the ACCC said.
"We are particularly disturbed by the intrusive video surveillance many victims have been subjected to over extended periods."
IN OTHER NEWS:
International students have returned to Australia in droves after being unable to travel during the pandemic.
The Australian Bureau of Statistics said 42,830 students arrived in April, 21,700 more than in the same month last year.
In 2022 China was the leading country of origin for international students studying in Australia, followed by India, Nepal and Vietnam.
The ACCC warned Chinese students to speak to the local police in Australia, the international student support body of their university or their local Australian-Chinese community support service if they are told they are being investigated by a caller.