“Scams Unveiled: The Dark World of Deception”

Every year, Australians suffer significant losses due to various complex scams, some of which involve the use of trusted brands and institutions. Scams in various forms, ranging from job offers, rentals, driving, shopping, to seeking medical services, continue to prey on unsuspecting victims. According to a 2022 survey by the Australian Competition and Consumer Commission (ACCC), the most common scams include phishing, false billing, and online shopping fraud. Towards the end of last year, Australian federal police arrested four Chinese citizens, aged between 19 and 27, for their involvement in an online scam that caused AUD 150 million in losses globally. The rampant rise of scams, involving Chinese citizens and cases occurring frequently in Southeast Asian countries, has raised serious concerns.

The Madness of Telecommunication Scams

In March of this year, Australian authorities issued a warning to the public about a surge in scams impersonating myGov, with reports of such scams increasing by 160% in January compared to December 2022. These scams come in the form of emails and text messages, with scammers notifying victims of available funds that they can claim. Victims are then asked to verify their bank information through provided links to confirm their identity in order to receive a “refund.”

The ACCC points out that the intent behind these scams is to “gain credentials to take over your identity and commit fraud.” Scammers may also use fake login pages to obtain more personal information, such as financial details, or have victims fill out forms. Authorities urge Australians never to access myGov through links but to use independent internet searches to access the website. These scams are just one type among many, and Australians are losing more money to scams than ever before. In comparison to Australia, where the banking and legal systems are more robust, the situation is even worse in Southeast Asian countries.

Since 2022, reports of victims of telecommunication scams being killed or injured have emerged in Southeast Asia. Victims come from various countries, including China, Taiwan, Hong Kong, and several Southeast Asian nations. The most affected areas are in northern Myanmar, Cambodia, and the Philippines. Both Cambodia and the Philippines have deployed large numbers of law enforcement officers to arrest thousands of suspected scammers. According to figures released by local police over several days, Chinese nationals make up the majority of those arrested. Despite China’s consistent calls for strict enforcement against scams, the problem continues to escalate.

A report by the Communications Fraud Control Association (CFCA), a professional organization dedicated to combating telecommunications fraud, reveals that in 2021, the global telecommunications industry generated approximately USD 1.8 trillion in revenue. Economic losses due to telecommunications fraud amounted to USD 39.9 billion, a 28% increase from the previous year. The report identifies several countries as hotspots for telecommunications fraud calls but provides no specific data related to China. However, based on currency conversion, China’s involvement in scams amounted to CNY 326.5 billion, surpassing the combined losses of all other countries.

The Australian Government’s Response

Faced with the seemingly insurmountable challenge of telecommunication scams, the Australian government has begun to change its hands-off policy. The government is pushing for reforms in the banking system to ensure that customers who fall victim to scams are compensated. In the past, banks prioritized customer privacy, making it difficult for scam victims to obtain information about the scammers during banking transactions or track the flow of stolen money. Now, the Australian government requires banks to guarantee compensation for victims when fraud occurs, shifting the burden from customers to banks.

With banks now responsible for reimbursing victims, they will likely be more motivated to track where the stolen money goes. Banks possess this capability, but they often didn’t make a significant effort to investigate losses when customers were the ones affected. However, when banks are liable for the losses, they are expected to change their policies and actively pursue recovery of their own losses.

Banks can no longer afford to turn a blind eye to scams, as they are now held accountable. This change will not only improve the chances of recovering stolen funds but also create more pressure on scammers.

Throughout this process, the government will also strengthen public education. Since many scams involve safe internet use, the Australian government must provide more education and training on internet security for national security. This is especially crucial for the middle-aged generation, who are internet users but often lack awareness of online security. Immigrants to Australia, who may be more vulnerable to scams due to their lack of familiarity with the society, also need additional resources to empower them to navigate safely.

Chinese immigrants are particularly vulnerable, as many scams specifically target them. These individuals often come from societies with limited access to information and are more likely to believe messages claiming to be from government departments. The Australian government must collaborate with Chinese-language media to comprehensively promote internet security education within the Chinese community.

China’s Awkward Position

Current data suggests that China is undoubtedly one of the major victims of telecommunication scams. However, it remains uncertain whether China is the world’s leading country in telecommunications fraud. Organized crimes are often challenging to define precisely, and individuals who enter the realm of telecommunications fraud can transition from passive victims to active criminals, making classification difficult. According to Freedom House, an organization dedicated to human rights, China has ranked at the bottom of global internet freedom for eight consecutive years. The Great Firewall undoubtedly impedes people’s access to information. In a country where even Google searches are banned, Chinese citizens have access to only official, single-source information, making it nearly impossible to verify telecommunications fraud information for the average person.

In Southeast Asian countries, telecommunications fraud activities exhibit significant characteristics of industrialization, organization, and internationalization. Despite ongoing severe crackdowns by various countries, these scams continue to proliferate. As Chinese citizens travel more frequently to Southeast Asia, some scam operators establish themselves in Southeast Asian countries and become part of criminal organizations, orchestrating scams with support from related criminal networks. The structure of cross-border telecommunications fraud continuously evolves, with a new type of scam known as the “Pig butchering Scam” emerging. Beneath the surface of seemingly pleasant encounters with charming and successful strangers lies a dark abyss.

In recent years, victims of pig butchering scam worldwide have suffered losses in the hundreds of millions of US dollars. Many online scam operators are, in reality, victims of human trafficking, forced to operate scams within heavily guarded compounds in Southeast Asia that resemble prisons. Most scamming groups appear to operate online scams from within these closely monitored compounds, and the owners of these compounds maintain close ties with political and business elites, creating a web of secrecy.

These criminal organizations with overseas bases are gradually expanding and have started forming relatively complete black-market chains. They are not only engaged in telecommunications fraud but also combine a range of criminal activities, including online gambling, smuggling, and human trafficking, creating complex and challenging crime scenarios. Criminals exploit human weaknesses such as greed, gullibility, and self-deception, using carefully designed rhetoric to lure people into their traps. Furthermore, telecommunications fraud carries a lower risk but offers high profits. This explains why scams have persisted throughout human history and continue to thrive today, aided by the internet and emerging technologies.

Moral Dilemmas

With the improvement of artificial intelligence systems, large language models like OpenAI’s widely used ChatGPT are better at mimicking human responses. This opens up new avenues for scammers to employ AI in phishing scams, typically involving emails or text messages claiming to be from legitimate sources. These scams often rely on social engineering to extract personal information. As new technology emerges, Scamwatch continually sees scams becoming more sophisticated, highlighting the risks associated with artificial intelligence. It is evident that the battle against telecommunications fraud is an enduring one.

Especially in times of economic hardship, many ordinary individuals face significant life pressures. Falling victim to a telecommunications scam can compound their challenges. For these scammers, who also have families and loved ones, it raises questions about whether they ever consider the potentially devastating consequences their actions might have on another family. Empathy is often a fundamental manifestation of a person’s conscience. However, in the face of substantial gains, many individuals lose sight of their moral compass.

China is often described as a “civilized ancient country, a land of etiquette,” emphasizing the Chinese people’s strong sense of decorum and manners. However, the facts and data revealed by telecommunications scams seem to depict another facet of contemporary Chinese society: a focus on self-interest above all else. China was traditionally a society built on interpersonal relationships, where ethics played a vital role in maintaining social bonds. In the face of market forces that prioritize “money above all else,” the fundamental moral values that underpinned society have been severely eroded, especially among the lower social strata.

A society seemingly grounded in morality can quickly reveal a grim side when faced with the pursuit of self-interest. As the saying goes, “When granaries are full, people know courtesy; when clothing and food are sufficient, people know honor and disgrace.” This principle couldn’t be clearer. In recent decades, China’s wealth gap has widened significantly. Those at the bottom face greater risks in the competitive struggle for survival. In the face of fierce competition, people’s morality is put to the test. Once they fail to compete, they risk falling into an abyss from which recovery may be nearly impossible. Consequently, the overall moral standards of society can collapse quickly and mercilessly, with some even adopting the motto “Laugh at poverty, not at prostitution.” Scammers continue to operate relentlessly, and their mentality has trampled on the moral bottom line and buried individual conscience. To combat telecommunications fraud, it requires upholding the rule of law and reshaping values and ethics.

Some argue that due to the Cultural Revolution and dehumanizing education under communism, today’s generation in China may have lost their moral compass. Whether this claim holds true remains unclear. Confucius believed that human nature is inherently good, and as long as society re-emphasizes these moral standards, individuals’ moral consciousness can be awakened. Alternatively, Xunzi argued that human nature is inherently evil, but strict governance through rule of law can constrain wicked intentions, preventing them from turning into evil actions. Regardless of the philosophical perspective, in the face of the global prevalence of scams, it is time for the Australian government to take action.

Author : Editorial of Sameway Magazine
Image : Internet