Shanghai busts TCM scam ring targeting vulnerable hospital patients

Shanghai police have dismantled a criminal group preying on nearly 1,000 vulnerable seniors seeking treatment at major hospitals in a recent crackdown on medical scams. The operation netted over 40 suspects and seized millions of yuan in illicit earnings.

Led by Dai and two other ringleaders, the group utilized three traditional Chinese medicine clinics as their operational hubs.

Dai, upon arrest, confessed to orchestrating the scams, revealing that the organized fraudsters strategically positioned themselves in major hospitals in Pudong's Lujiazui area. Deploying over 30 swindlers in groups of two to five, they engaged unsuspecting patients in conversation while waiting for medical treatment.

Claiming connections with "veteran TCM practitioners", they enticed victims to the sham clinics, Tao Qianjun, a police officer from the Lujiazui Public Security Bureau, explained the scheme to China Central Television.

The so-called practitioners at the three clinics, although possessing medical qualifications, lacked experience in treating patients at renowned hospitals.

The scammers, after consultations, prescribed medications at inflated prices, often several times higher than market rates. Victims, unaware of the deceit, would end up paying exorbitant fees for treatment courses. Tao noted instances where pharmacy staff replaced prescribed drugs with cheaper alternatives, further maximizing the fraudsters' gains.

"A 2,000 yuan ($277) medicine might cost just 200 yuan," Tao revealed. "And regardless of the illness, they'd often prescribe the same mild formula."

Preliminary investigations indicate that nearly 1,000 victims fell prey to the scheme, with the total amount defrauded exceeding 4.5 million yuan.

Dai and 40 suspects have been criminally detained on charges of fraud. The case remains under investigation as authorities work to unveil the full extent of the operation and bring justice to the victims.