Center

Gov't vows to bust more commercial bribery cases

(Xinhua/AFP)
Updated: 2006-11-24 11:10

White-collar criminals bilk gullible Chinese of billions

Increasingly sophisticated white-collar criminals have defrauded Chinese citizens of about 10 billion dollars so far this year, state media has reported.

A total of 62,000 reported cases of economic crimes in the first 10 months of this year was up nearly 10 percent on the same period in 2005, said the China Daily, citing the Ministry of Public Security.

The problem "could trigger social instability and impede economic security of the country," the ministry's deputy director, Gao Feng, was quoted as saying.

White-collar criminals are capitalizing on China's free-wheeling market economy to prey on gullible victims, mostly old people, who are easily persuaded to part with their savings by the offer of high returns from bogus business schemes.

Typical fraudsters offered stock holdings in non-existent companies, get-rich-quick schemes involving real estate, pyramid selling schemes already outlawed or plans to establish high-tech or pharmaceutical companies that never materialized.

"Most of the victims are the elderly who want higher returns for their savings," said Gao.