Exposing a 6 Million Yuan Credit Scam: From Falsified Qualifications to POS Machine Swindling, Multiple Suspects Face Criminal Charges
Packaging a credit scam and using a POS machine to cash in? Recently, the Kunshan People's Procuratorate of Jiangsu Province has handled a case involving the use of a POS machine to cash in on credit funds.
A criminal gang designed an entire chain of fraudulent activities, starting with "packaging" fake qualifications, then manipulating bank loan applications, and finally using POS machines to withdraw funds illegally. According to investigations, the amount involved exceeds 6 million yuan, with dozens of suspects being pursued for criminal responsibility.
Falsified Qualifications Credit Scam, POS Machine Swindling
Criminal Gang Operates on Multiple Levels to Obtain Bank Loans
According to the Supreme People's Procuratorate's official information, in November 2020, a group of scammers targeted individuals without credit qualifications. They created fake work units and forged income proof documents to "package" these people as high-income groups, then organized them to apply for bank loans. Using carefully fabricated materials, many individuals successfully obtained bank-issued credit lines, allowing the criminal gang to swindle large amounts of personal credit consumption funds.
However, obtaining a loan was only the beginning of the scam, as POS machine transactions were the key to converting funds into cash. Middlemen like Wang and Yu, who worked as "money brokers," would use their POS machines to withdraw funds illegally through fake consumption transactions.
After successfully withdrawing funds, these middlemen would first take a percentage of the profits before transferring the remaining funds to the criminal gang's account.
The case data shows that Yu and Li together helped transfer 150 million yuan in illegal bank loans, earning them over 690,000 yuan; Wang alone helped transfer 300 million yuan, then partnered with Zhang to transfer 40 million yuan, resulting in a combined profit of over 690,000 yuan.
Pursuing the Criminal Chain of Events
Multiple Suspects Face Criminal Charges
During the investigation stage, the procuratorate intervened and guided the police to expand their investigation scope, using data on bank loan applications and POS machine transactions as a foundation. By analyzing financial flows, investigators were able to reconstruct the criminal scheme's entirety, pinpointing suspects at every level, from packaging to middlemen to cashing in.
The Supreme People's Procuratorate ultimately determined that Wang et al. mainly engaged in illegal activities at the downstream end of the scam, focusing on withdrawing funds through POS machine transactions. While they did not directly collaborate with the criminal gang, their actions still constituted illegal operations and financial fraud.
As a result, Wang et al. were sentenced to imprisonment for 3-6 years for non-lucrative activities; Zhang was given suspended punishment. By 2024, 52 suspects involved in the upstream side of the scam were also charged with criminal responsibility and sentenced to imprisonment for 11-7 months.
Additionally, the procuratorate discovered that loan repayment rates after the loans matured were extremely low, leading to 19 effective civil judgments being issued. Furthermore, the procuratorate issued retrial recommendations for 8 cases and proposed appeals for 5 cases to rectify this situation.
To address these issues, relevant laws and regulations have been put in place to strengthen oversight and risk assessment, creating a "safety net" against illegal activities.
Illegal Cash Withdrawal Conceals Financial Risks
Cardholders Must Exercise Caution When Using Cards
In recent years, the use of POS machines to cash in on credit funds has become increasingly prevalent. Scammers are exploiting the convenience of credit cards to siphon off large sums of money and enjoy a profit.
The People's Bank of China has issued regulations to strengthen oversight and management, including the "One Machine-One Merchant" rule, which requires each POS machine to be linked to only one merchant and one receiving terminal serial number.
However, despite these efforts, new forms of illegal activities have emerged. For example, a recent case in Shunde Court involved a suspect who discovered that receipt codes could be used to cash in on credit funds without charging fees. The suspect registered multiple individual businesses and applied for merchant receipt codes.
Through this method, the suspect earned profits by charging fees for services rendered, then returning the remaining funds to customers. This case highlights the need for vigilance among cardholders and a strengthened regulatory environment to prevent financial fraud.