In order to encourage themselves to get up early, around the Spring Festival of 2018, Chongqing citizen Zheng Yong (pseudonym) joined an early-rising challenge card-punching group on Wechat. The card-punching group requires participants to pay the challenge money, and participants who punch in on time every day can divide up the challenge money of those who do not punch in. The group also said that the more participants invested, the greater the proportion of dividends.
At first, Zheng Yong paid thirty or fifty yuan, and he could get up from seven to eight in the morning and punch in a card to collect one or two yuan. Ten days later, he added 5,000 yuan to the Challenge Fund, but did not receive the same proportion of income. Only once did Zheng Yong forget to get up and punch in the card and find that 5000 Challenge Gold was deducted at one time, did he realize that there was a problem and went to Shapingba Branch of Chongqing Public Security Bureau to report it to the police.
According to the investigation of Shapingba Branch of Chongqing Public Security Bureau, the gangs who deceived Zheng Yong demanded that the participants pay 10-5000 yuan of challenge money by creating Wechat public numbers and APP platforms such as Early Rise Challenge Group and Early Rise on Time. Later, gang members tampered with background data to reduce the amount of money that the punctual card-punchers scored by the non-card-punchers, thus illegally seizing the challenge money.
The background of the Early Rise Challenge Team shows that on June 2, 2018, the real amount of unpacked cards was 316,000 yuan, but only 5603 yuan was allocated. New Beijing News reporter Chen Jing
At present, the Shapingba police have arrested 57 suspects and frozen more than 5 million yuan of funds involved.
100,000 people invested and participated, making more than 4 million profits
According to Yang Bing, captain of the Second Criminal Investigation Team of Shapingba Branch of Chongqing Public Security Bureau, since March and April 2018, they have received similar reports that they were deceived by an early card game.
With the assistance of Chongqing Criminal Investigation Team, Shapingba police found that the enterprises involved were Chongqing Chuangcai Network Technology Co., Ltd. (hereinafter referred to as Chongqing Chuangcai). The company operates two Wechat companies, the Early Rise Challenge Group and the Early Rise on Time, and develops APP. At first, the game set a challenge of 10 yuan to 5,000 yuan, and later lifted the ceiling, many people invested in the challenge of up to 20,000 yuan to 80,000 yuan.
The police arrested the scene. Map for Shapingba District Bureau of Chongqing Public Security Bureau
Li Mou, the head of Chongqing Chuangcai, told the police that they would tamper with the data behind the scenes and artificially reduce the amount of unpacked cards so as to conceal most of the unpacked amount and take it as their own. As for the reduction and concealment of the proportion of money, Li said it was not fixed, after the adjustment, the amount of money that we can divide up, as long as it is higher than the number of people who did not punch in the card multiplied by the minimum margin of 10 yuan.
Police in Chongqing Chuangcai software background found that when the activities started in January 2018, the number of participants was very small. In order to attract more participants, the group often subsidizes its own funds to reward participants. For example, on January 19, the amount of unpacked cards was only 130 yuan, while the amount actually used for dividend distribution was 230 yuan.
With more and more participants, the group began to conceal large amounts of unpaid funds. For example, on June 2, 2018, the actual amount of non-card-punching was 316,000 yuan, but the amount of the card-punching on time was only 5603 yuan.
Members of the group discuss how to deal with user queries. Map for Shapingba Branch of Chongqing Public Security Bureau
Because the participants do not know each other and do not know how much money they have invested in each other. It is this information asymmetry that this group uses. Yang Bing said.
Shapingba police found that 380,000 registered users in two Wechat public numbers and APP, the Early Rise Challenge Group and Early Rise on Time, run by Chongqing Chuangcai, had actually invested about 100,000 people to participate in the challenger. Yang Bing said that from its inception in January to its arrest in July 2018, the group earned more than 4 million yuan.
Developing more than 100 franchisees
A further investigation by Shapingba police found that Chongqing Chuangcai was not the only one who created the early-rising card fraud. The company also developed more than 100 franchisees, covering more than 20 provinces such as Shandong, Hunan and Guangdong. According to the suspect Li Mou, each franchisor has to pay a membership fee of 120,000 yuan to Chongqing Chuangcai.
Franchisors also have their own Wechat group, often in the group to exchange how to make money, how to deal with user queries.
These franchise associations revise the background data twice, and the means of fraud are also varied. Yang Bing told the Beijing News that some franchisees make a hammer sale, and after the participants pay, they stop the platform and walk away; some will set up blacklists for the participants who invest a lot, so that they cant punch in the regular period of time, so that all the principal will be deducted; some will quietly change the punching time in the middle of the night, and change the punching time to one minute without seeing it. People cant punch in on time.
A franchisee quietly changed the punching time to 5:20 to 5:21 in the morning. Map for Shapingba Branch of Chongqing Public Security Bureau
An affiliate named Early Rise Challenge Army had secretly changed the time of punching in to 5.20 to 5.21, causing many participants to miss punching out. An angry participant wrote a message to the franchisers customer service, saying, If you want to make these ignorant money, I will complain to the end.
According to Yang Bing, at present, Shapingba police have captured 57 people involved, including Guangzhou Chuangcai and its franchisees, and frozen more than 5 million yuan of funds. Nine of them have been transferred to the procuratorate for prosecution.
Some participants complained about the challenge activities and expressed their dissatisfaction. Map for Shapingba Branch of Chongqing Public Security Bureau
Source: Author of New Beijing News: Editor-in-Charge of Chen Jingzhen: Su Honghong_NBJ9980