Fake high-street bank cons Chinese customers out of £20m
Bogus bank, made to look like a state-run operation, promised customers 2 per cent interest a week on savings
A fake bank set up on a high street in China's Jiangsu province has managed to go undetected for over a year, conning customer out of more than £21m.
The rural financial cooperative posing as a large bank promised two per cent interest a week on deposits and high interest subsidies. More than 200 people are believed to have fallen for the con, the South China Morning Post reports.
It was made to look identical to a real state-owned bank with official looking logos, large LED screens, and staff in professional uniforms.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Police were finally alerted to the scam after a businessman noticed he had stopped earning interest on the £8m he had deposited, and the bank refused to return his savings.
Five people have been arrested in connection with the scam, including one woman who was intercepted as she attempted to flee to the well-known gambling centre of Macau, according to the BBC.
Shocked that the illegal bank was allowed to operate for over a year before police noticed, residents took to social media to question local authorities. "More than a year, it looks like the authorities have gone blind," one Weibo user said. "Fake banks, and a fake local government," commented another.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Houston travel guide: the energy capital of the world
The Week Recommends There's much more to the Texas city than you might think – and plenty of places to refuel and refresh yourself
By Neil Davey Published
-
Best staycation destinations in Wales
The Week recommends Rich in Celtic culture, coastline and castles, England's neighbouring nation has much to offer visitors
By Adrienne Wyper, The Week UK Published
-
The importance of discussing and dealing with debt
The Explainer Increasing numbers of people have 'problem debt' – but there are ways to tackle it
By Marc Shoffman, The Week UK Published
-
Why are kidnappings in Nigeria on the rise again?
Today's Big Question Hundreds of children and displaced people are missing as kidnap-for-ransom 'bandits' return
By Julia O'Driscoll, The Week UK Published
-
Deaths of Jesse Baird and Luke Davies hang over Sydney's Mardi Gras
The Explainer Police officer, the former partner of TV presenter victim, charged with two counts of murder after turning himself in
By Austin Chen, The Week UK Published
-
How the idyllic Galapagos Islands became staging post in world drug trade
Under the radar Ecuador's crackdown on gang violence forces drug traffickers into Pacific routes to meet cocaine demand
By Harriet Marsden, The Week UK Published
-
Armed gangs, prison breaks and on-air hostages: how Ecuador was plunged into crisis
The Explainer Gangs launch deadly revenge after president declares state of emergency following escape of feared drug boss from prison
By Harriet Marsden, The Week UK Published
-
Ecuador tips toward chaos amid prison breaks, armed TV takeover
Speed Read New President Daniel Noboa authorized the military to 'neutralize' powerful drug-linked gangs after they unleashed violence and terror across Ecuador
By Peter Weber, The Week US Published
-
Prague shooting: student kills 14 people at university
Speed reads Police believe suspect, who killed himself, may have shot his father before carrying out mass murder
By Arion McNicoll, The Week UK Published
-
Ex-US diplomat confessed spying for Cuba to undercover agent, FBI says
Speed Read DOJ says former US ambassador Manuel Rocha perpetrated 'one of the highest-reaching and longest-lasting infiltrations of the United States government by a foreign agent'
By Peter Weber, The Week US Published
-
Death of first non-binary judge in Mexico instils fear in LGBTQ+ community
Under the Radar Jesús Ociel Baena's suspected murder reveals dangers to transgender and non-binary people
By Harriet Marsden, The Week UK Published