Scam in ChinaOther tricks
Pyramid and Ponzi investment schemes in China
How it works
Criminals draw people into dishonest investment schemes. These schemes are described as widespread in Chengdu. Operators may become violent if they think they will be exposed.
Warning signs
- A stranger approaches you with an investment offer.
- You are pressed to put money into a scheme you do not understand.
How to avoid it
- Avoid investment offers made during casual encounters.
- Do not hand over money or financial details.
- Leave calmly if someone becomes pushy.
If it happens to you
Stop further payments. Avoid confronting or trying to expose the operators yourself. Save the evidence and contact police.
- Move somewhere safe. Avoid threats, physical arguments or chasing a thief.
- Stop further payments. Freeze stolen cards and secure affected payment or phone accounts.
- Save evidence: receipts, messages, payment records, vehicle details and the place and time. Collect evidence only when safe.
- Report the scam or theft to police on 110. For a suspicious phone call, use 96110 for scam enquiries.
- Ask your hotel for help explaining the problem. Contact your card issuer about disputed payments and your embassy or consulate if your passport was stolen or you are detained.
- Ask for a police report or reference number. Keep copies for your bank, insurer and any follow-up complaint.
What travellers report
Posts about this scam on other sites, summarised in our words. Open one to read the original.
Questions
What is the pyramid and Ponzi investment schemes scam in China?
Criminals draw people into dishonest investment schemes. These schemes are described as widespread in Chengdu. Operators may become violent if they think they will be exposed.
How can I spot it early?
A stranger approaches you with an investment offer. You are pressed to put money into a scheme you do not understand.
How do I avoid pyramid and Ponzi investment schemes in China?
Avoid investment offers made during casual encounters. Do not hand over money or financial details. Leave calmly if someone becomes pushy.
What should I do if it happens to me?
Stop further payments. Avoid confronting or trying to expose the operators yourself. Save the evidence and contact police.
Where in China does this happen?
Chengdu; no specific neighbourhood is given. It has been reported in Chengdu.
How common is this scam in China?
Very common. China is generally safe for visitors, and violent street crime is rare. Tourist scams and theft still happen, especially around busy sights, transport hubs and crowds. Watch for taxi overcharging, invitations that lead to expensive purchases, fake goods and pickpockets.
Are there similar scams in China?
Yes: suspicious phone calls, unnecessary dental treatment upselling.
Who can I report it to?
Public security police: call 110 to report a scam or theft. Give your location, what happened and any evidence. Ask hotel staff for language help if needed. Scam enquiry service: call 96110 to enquire about suspicious phone calls. Police may also use this number with an area-code prefix to warn about possible scams. Consumer Protection: call 12315 about a consumer dispute, such as a misleading sale or disputed business charge. Keep the receipt and details of the business. Anti-corruption reporting service: call 12388 to report a bribe demand. Hotel doorman or front desk: ask for help if a taxi seriously overcharges you on the way to your hotel. Show the receipt, driver's ID or number plate details. Card issuer or payment provider: use its official app or verified contact number to freeze a stolen card, report an unauthorised payment or ask about disputing a charge. Your embassy or consulate: use its official contact details for help after passport theft or detention. If detained, politely request consular access and a translator.
What number do I call in an emergency in China?
Police; report scams and theft: 110, Ambulance / EMS: 120, Fire Department: 119, Traffic Police; merged with 110 in some cities: 122, Scam enquiry: 96110.
Reviewed by @snuck