Around 234 people have been arrested in Bank Scam In China
According to reports from local media outlets on Monday, around 234 people have been arrested for their alleged involvement in economic fraud at banks in the rural area of China’s Henan state. The Xuchang municipal police claim that they have made significant progress in the investigation. The authorities have tracked down the suspect and recovered the lost money, in addition to the original loan. The Henan national branch of China made headlines when it declared that the money people had put into an investment product from which they could not withdraw their money.
More than a thousand people demonstrated their displeasure with the aforementioned abnormalities by gathering in front of the People’s Bank of China in the second week of July. As of mid-August, local authorities had already repaid 18 billion yuan to victims. The government said early on Tuesday that they would start paying back investors who had put down between 400,000 and 500,000 yuan.
The Xuchang city police have released a statement claiming that a group of fraudsters led by Lyu Yi were responsible for the scam. Four rural banks, including Xinminsheng village bank, were allegedly illegally controlled by fraudsters thought to be involved in a wide variety of other crimes. The investigation is lawful, according to the police, as reported by a regional newspaper. The Lyu Yi fraudsters have been operating since 2011, according to the investigation that was disclosed by local authorities. Many rural banks were under the fraudsters’ control. People who have lost more will get 500,000 yuan right away, and the rest of the money will be held in escrow.
Customers were fooled into giving the con artists their money by the promise of better interest rates on savings than those offered by banks. The fraudulent actors paid the additional 13-18% interest out of the initial monies. It has been stated that the scammers took advantage of their victims by using interest subsidies to scam money out of them and funding some very large clients. On the first week of July, over a thousand depositors gathered outside the Zhengzhou branch of the People’s Bank of China to voice their displeasure. A couple of the clients also mentioned that their health classification had shifted. By the end of the following month, four officials who had abused their authority in changing codes had been apprehended. The demonstrators have called for severe measures to be taken against the scammers.