Fake Relationships, Investment Scams, and Bogus Online Stores Lead to 36 Victims Losing Over NT$21.48 Million

(CNA) - Police in southern Taiwan have busted a fraud ring that used fake dating profiles to lure victims into investing in a bogus online store platform under the guise of a joint business venture. Authorities arrested the alleged ringleader, surnamed Chen, and two others, who are believed to have defrauded at least 36 people of over NT$21.48 million.

The Criminal Investigation Bureau's Southern Taiwan Branch announced today that its investigation, based on data from the 165 anti-fraud hotline, uncovered a group that had set up fake overseas online store websites, including Lookfantastic, Migros, Ocado, and Overstock. The scammers first cultivated relationships with victims through dating apps to gain their trust. They then enticed victims to open shops on the fake platform by promising high profits from a "joint venture to operate an online store."

During the scam, the group manipulated fake transactions and withdrawal records in the backend to create an illusion of profit. They continuously demanded victims pay for product costs, replenish order funds, or upgrade their stores. Victims were instructed to transfer funds via Tether (USDT) to cryptocurrency wallets designated by the scammers to generate profits. Preliminary investigations indicate that 36 victims were affected, with financial losses totaling over NT$21.48 million.

Under the direction of the Taoyuan District Prosecutors Office, police conducted a long-term investigation and traced the origins of the scam, successfully apprehending the fraud ring led by a 27-year-old man surnamed Chen.

Chen, the alleged ringleader, was responsible for remotely managing the actual operations of an overseas scam call center in Cambodia and directing 25 members there. Huang, 27, served as a mid-level manager and money launderer, responsible for creating cryptocurrency wallets, managing fund flows, and controlling the platform's deposits and withdrawals. Hsu, 37, acted as the engineer, responsible for developing, setting up, and maintaining the fake investment mall websites, and providing scam domain names for the group's use. Together, they formed a complete criminal industry chain encompassing the mastermind, website development, overseas call centers, and cryptocurrency money laundering operations.

The Criminal Investigation Bureau launched two enforcement operations, arresting core members including the leader Chen, money launderer Huang, and engineer Hsu. Seized items included 27 mobile phones, 11 laptops, 2 desktop computer towers, 1 set of surveillance equipment, USB drives, 33,619.06 Tether coins (valued at approximately NT$1.1 million), over NT$180,000 in cash, and relevant company documents.

The case has been transferred to the Taoyuan District Prosecutors Office for investigation on charges including aggravated fraud, violation of the Organized Crime Prevention Act, money laundering, and conspiracy. (Editor: Yang Sheng-ru) 1150707

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