China unveils details of investigation into cross-border telecom fraud ring

China's Ministry of Public Security released details of the investigation into a cross-border telecom fraud criminal group led by Xu Faqi, also known as Xu Laofa, based in Kokang, northern Myanmar, China Media Group reported Friday.

The investigation found that since 2019, Xu and his associates had exploited their local influence to collaborate with telecom fraud gangs, targeting Chinese citizens on a large scale, the report showed.

It noted that the group built or rented 14 scam compounds, including hotels and industrial parks, where large numbers of people were recruited to carry out online fraud.

Xu deployed more than 400 armed militiamen who provided protection for these compounds and allowed sponsors to use violence, torture and even killings to discipline or punish lower-level scammers who failed to meet fraud targets, it said.

It revealed that the group allegedly involved one death resulting from intentional injury, as well as dozens of incidents related to illegal detention and extortion inside the compounds.?

The group, led by Xu as its ringleader, is suspected of multiple offenses, including fraud, intentional injury, unlawful detention and extortion, involving over 3,400 cases and illicit gains exceeding 1.1 billion yuan ($154 million), it said, adding that a court in Chongqing heard this case from Sept 17 to 19.

Chinese authorities had issued a public warrant for Xu in December 2023 after gathering substantial evidence. In January 2024, thanks to the China-Myanmar law enforcement cooperation, Myanmar police captured Xu and handed him over to the Chinese authorities.

To secure evidence, a special Chinese task force entered conflict zones in northern Myanmar to work with local authorities and collected critical materials. Meanwhile, police in Chongqing also mobilized over 300 officers, conducting investigations across 18 provincial areas, including Fujian, Guizhou, Gansu and Yunnan.

Since China's Ministry of Public Security launched its campaign to combat crimes in northern Myanmar involving Chinese nationals, joint operations between China and Myanmar have led to the arrest of more than 57,000 Chinese suspects linked to telecom fraud, the report said.