On October 15th, the Guangdong Provincial Public Security Department released an update regarding their ongoing crackdown on phone and bank card-related fraud. Since the beginning of the year, law enforcement in the province has dismantled a staggering 1,795 criminal organizations and detained over 11,700 suspects involved in these fraudulent activities.
In their report, the department emphasized their commitment to utilizing a new policing model based on “specialization + mechanism + big data.” This approach has allowed them to focus on local fraud-related entities such as “card farmers,” “card heads,” and “card dealers,” and to tackle the associated criminal networks head-on.
On the same day, the department also shared several notable cases that highlight their efforts. Beginning in 2024, they coordinated with police forces from regions including Foshan, Zhongshan, Zhaoqing, and Yunfu to investigate key links in laundering criminal proceeds through rental and borrowed communication tools and merchant settlement cards. This investigation uncovered numerous fraud rings using merchant codes for money laundering.
The investigation revealed that these criminal groups would instruct victims to scan merchant QR codes, which led to the transfer of stolen funds into the merchant accounts. They would then withdraw the illicit money directly using those settlement cards or transfer it via platforms like WeChat and Alipay.
Between May and July 2024, the Guangdong Provincial Public Security Department launched coordinated operations dubbed “Operation Act 19” and “Operation Act 25,” resulting in the detention of 428 suspects and effectively severing the financial lifelines of these fraud schemes.
Additionally, in March 2024, the department organized a special crackdown targeting the black and gray market surrounding phone and bank card crimes. This initiative led to the detention of 862 individuals, with an additional 249 facing other legal outcomes. Among those apprehended were 773 “card farmers,” and efforts to prosecute card heads, dealers, and other contributors to the fraud ecosystem saw an extension of the crackdown, ultimately confiscating a significant amount of fraudulent equipment, including phones, bank cards, and computers.
