Beijing police uncover scam involving gold and prepaid card purchases via courier services

Police in Beijing say they have uncovered a scam where victims are deceived into buying valuable items such as gold or prepaid cards, which are then transported offline using courier or ride-hailing services, creating challenges for law enforcement in asset recovery.

The Beijing Public Security Bureau revealed this scam at a news conference on Friday, announcing that the capital's police intercepted more than 60 million yuan ($8.9 million) in cash and 19.43 kilograms of gold since the beginning of this year, with criminal detention of over 450 suspects.

Li Xiaoyan, an official from the bureau's criminal investigation group, said that victims, after being brainwashed by fraudsters, would go to banks and withdraw large sums of cash under false excuses like "home renovation", "buying an apartment", "wedding gifts", or "holiday bonuses", adding "which is the most frequently observed pattern".

Fraudsters are also tricking victims into buying gold bars and jewelry by claiming physical gold investments can lower taxes, while others push specified luxury goods — from phones and laptops to cameras, watches, bags, tea, liquor, gift cards, and even bulk grains, according to Li.

"In one case, the police from Tongzhou district busted a group using such purchases to launder money, detaining three suspects," she said. "They also seized 11 phones and two earphones, 252.5 grams of gold bars, and a luxury handbag."

She noted that some money mules are now traveling to Beijing by train or plane and using ride-hailing services arranged by accomplices to carry out cross-district operations with greater stealth. Once victims are tricked into leaving cash or gold bars at specified spots, the goods are quickly moved using delivery, food-delivery, ride-hailing, or freight platforms.

"In a case we recently handled, the scammers had the victim buy expensive goods online and send them to a hotel pickup point. They then had a courier retrieve the package, forward it to another depot, and finally used a same-city courier service to pass the goods to a designated fence," she added.

She revealed that more than 570 people have been defrauded this year through such tactics, with victims mostly in the 20-to-50 and over-60 age brackets. The youngest was 18 and the oldest 89. "Most either had savings and a penchant for investing, or were drawn in by scams on social media or investment apps before being persuaded to withdraw cash or buy gold," she explained.

She reminded the public to be more careful about messages and phone calls from strangers, adding "any instruction to pick up or deliver cash, receive or transfer funds, rent or sell bank cards, or buy and ship gold, gift cards, or luxury goods for others is a money-laundering ploy in disguise."

Prosecutor Chen Yutong said that authorities will keep up the crackdown on gold-related fraud in coordination with police, while warning the public that accepting gold or cash on behalf of others could expose them to charges of telecom fraud or money laundering.

"It's our duty as prosecutors to sever the chains of fraud and protect public property," she emphasized. "We'll strengthen our professional response to online fraud, work with all relevant agencies to intensify our campaign, and build a solid shield against scams in the capital."