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By Jason Pan / Staff reporter, with CNA
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Police on Thursday said they have arrested 26 people and shut down an investment fraud operation that collaborated with a scam center in Cambodia to swindle more than 40 victims.
A man surnamed Hsu (徐) led the fraud ring, which made about NT$36 million (US$1.2 million) in profits from the operation since it began in the middle of 2024, the Criminal Investigation Bureau (CIB) said in a press release.
During their investigation, police found that Hsu had prior convictions for fraud and narcotics offenses, and had been in contact with Bamboo Union members in Kaohsiung to start the scheme, Ninth Investigation Corps Deputy Captain Lee Chi-hsun (李奇勳) said.
Criminal Investigation Bureau Ninth Investigation Corps Deputy Captain Lee Chi-hsun speaks to reporters in Taipei on Thursday.
Photo: CNA
Hsu’s ring worked with a scam center in Cambodia run by Chinese nationals, using their telecommunication and computer technicians to produce adverts that promoted the expected earnings that could be made through the scheme, Lee added.
Adverts were also circulated on social media impersonating Taiwanese stock market analyst and blogger Shan Ben (杉本來了) to entice victims by promoting purported “hot tips” on stock prices, he said.
“Through this method, they lured victims into downloading fraudulent investment apps, and then instructed them to transfer large sums of money into dummy accounts, which were laundered by gang members,” Lee said.
Hsu would then direct “money mules” to collect the money through ATM cash withdrawals, which was then converted into cryptocurrency and cycled back to the fraudulent operation in an effort to evade detection by authorities, he added.
In addition, the gang members took advantage of upcoming K-pop concerts that were to be held in Taiwan by reselling tickets at inflated prices and setting up fake online auction sites, the CIB press release said.
After gathering evidence against the operation, the CIB conducted raids in January and arrested Hsu and 26 other suspects, it said, adding that most were arrested in Kaohsiung, Pingtung County and Yunlin County.
The CIB has gathered sufficient evidence including testimony from the money mules and gang members, as well as photos and a paper trail of dummy accounts and money transfers, Lee said.
Hsu and the 26 gang members are facing charges of fraud, breaching the Money Laundering Control Act (洗錢防制法), and other offenses, with 14 being held in pretrial detention.
