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May 10, 2013

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Intercept system to help tackle phone fraud

SHANGHAI police plan to establish an intercept system with telecommunications authorities to block fraudulent text messages to curb phone fraud cases in the city, the Shanghai Politics and Law Commission said yesterday.

Telecom fraud has been a prominent problem in Shanghai and the country in recent years. Through the first three months of this year, bank employees in Shanghai have persuaded local residents not to transfer 34 million yuan (US$5.6 million) to other accounts. They were later deemed to be fraud cases.

Fraud rings have illegally made 300 million yuan to 400 million yuan annually from the Shanghai market, according to the commission.

"It is urgent that police and related departments come up with ways to stop telecom fraud apart from busting the gangs," said Gu Jiming, deputy inspector of the commission.

Gu said Shanghai has learned from two other provinces, including Jiangsu, after they established an intercept system to prevent telecom fraud.

Based on the experiences of the two provinces, the system could reduce telecom fraud cases by 40 percent.

Fraud gangs keep inventing new stories to trick people into transferring their savings to other bank accounts. Presently the police update residents about new tricks on TV programs and in leaflets, reminding people to be careful when transferring money to strangers.

It is still not known when the system will be ready, but it's third on a list of priorities this year to make the city a safer place.

The top two are cracking down on illegal taxis and stopping group rentals.


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