Beware of Digital Yuan Scams: Unveiling the Tactics and Prevention Measures

Beware of Digital Yuan Scams: Unveiling the Tactics and Prevention MeasuresAs the Spring Festival approaches, various fraudulent activities are on the rise. Recently, criminals have been exploiting the digital yuan, a newly emerging payment tool, for scams, seriously harming public interests and disrupting the financial market order

Beware of Digital Yuan Scams: Unveiling the Tactics and Prevention Measures

As the Spring Festival approaches, various fraudulent activities are on the rise. Recently, criminals have been exploiting the digital yuan, a newly emerging payment tool, for scams, seriously harming public interests and disrupting the financial market order. This article will delve into the common tactics, harms, and prevention measures of digital yuan scams to help the public enhance their risk awareness and protect their finances.

The Rampancy of Digital Yuan Scams: Fraudulent Schemes Masquerading as "Digital Yuan"

The People's Bank of China (PBOC) Shanghai Head Office recently issued a public announcement warning the public against false information using its name, such as "invest 1 million yuan in digital yuan to receive a 1.04 million yuan rebate" and "paid recruitment of digital yuan pilot promoters." This false information exploits the public's curiosity and lack of understanding of the digital yuan, luring them into illegal financial activities, causing significant economic losses and social impact.

Zhu Keli, executive director of the China Information Association and founding dean of the Guoyan New Economy Research Institute, points out that such fraudulent activities, using the "digital yuan" concept as a gimmick, not only directly harm the public's property rights but also negatively impact the reputation and credibility of the digital yuan. To maintain the stability of the financial market and protect the legitimate rights and interests of the public, the public must enhance their risk awareness and never blindly trust promises of high returns and information from unknown sources.

Gao Zelong, vice president of the Digital Platform Branch of the China Communications Industry Association, also emphasizes that criminals exploit the public's unfamiliarity with the new concept of digital yuan, using false advertising to lure the public into investing in or participating in illegal financial activities. This not only harms the public's property interests but also severely disrupts the stability of the financial market. Even worse, such activities damage the reputation and credibility of the People's Bank of China and financial regulatory agencies, triggering financial risks and even leading to social instability.

Digital Yuan: Not an Investment Tool, Beware of High-Return Traps

The PBOC Shanghai Head Office clearly states that the digital yuan is a digital form of legal tender issued by the PBOC, exchangeable with physical currency at a 1:1 ratio, with no price fluctuations or room for speculation. Any claims of "investing in digital yuan for rebates" or "paid recruitment of digital yuan pilot promoters" are scams. The PBOC Shanghai Head Office has never issued any related announcements, nor has it established a "digital bank," nor has it organized the registration or subscription of "digital assets," investment in "digital yuan platforms," or distribution of "digital asset dividends."

Any project claiming to provide high returns through investment in digital yuan is highly likely to be a scam. The public must remember that the digital yuan is a payment tool, not an investment tool, its value is stable, and there are no investment returns. Do not blindly trust any investment opportunity promising high returns to avoid being deceived.

Common Tactics of Digital Yuan Scams and Case Analysis

Criminals using the digital yuan for scams are constantly innovating their methods, but the core is always to exploit the public's greed and information asymmetry. Here are some common scam tactics:

• Fake Investment Projects: Criminals use fake platforms or apps, using high returns as bait to attract the public to invest in digital yuan, eventually absconding with the funds. These scams usually involve complex investment processes and professional jargon to confuse investors.

• Fake Promoter Recruitment: Criminals use the guise of "paid recruitment of digital yuan pilot promoters" to collect high registration fees or deposits, ultimately providing no promotion opportunities and defrauding investors of their investment.

• Imitation of Official Apps and Websites: Criminals create imitations of official digital yuan apps and websites, inducing users to download and register, stealing personal information and funds.

• Forgery of Official Documents and Announcements: Criminals forge documents and announcements from the PBOC or other financial institutions to enhance the credibility of the scam.

• Spreading False Information Through Social Media: Criminals spread false information through social media platforms like WeChat groups and QQ groups to conduct large-scale fraudulent activities.

• Using Phone Calls and Text Messages for Scams: Criminals contact victims through phone calls and text messages, inducing them to engage in digital yuan transactions under various pretexts.

How to Prevent Digital Yuan Scams?

To effectively prevent digital yuan scams, the public needs to be vigilant, strengthen risk awareness, and master the following prevention measures:

• Identify Official Channels: Downloading the digital yuan app must be done through official channels, such as legitimate app stores. Do not trust download links from any other sources.

• Remember the "Four Traps": The PBOC Shanghai Head Office reminds the public to remember the "four traps":

• Activities conducted under the name of digital yuan for "investment trading profits," "common prosperity," or "account time-limited openings";

• Invitations to join digital yuan discussion groups using membership, shareholding, or benefits as bait;

• Filling in personal information on apps or websites other than official digital yuan activities;

• Counterfeit digital yuan apps provided through phone calls, websites, or mobile applications.

• Don't Easily Believe High Returns: Any investment project promising high returns should be treated with caution, and blind trust should be avoided. Investment should be rational, avoiding blind following.

• Protect Personal Information: Do not fill in personal information, especially bank card numbers and passwords, on unofficial channels.

• Do Not Easily Disclose Verification Codes: Do not disclose mobile phone verification codes to others, preventing criminals from using verification codes to steal funds.

• Do Not Trust Unfamiliar Calls and Text Messages: Be vigilant and carefully identify any calls and text messages from unfamiliar numbers, especially those involving financial transactions.

• Do Not Join Unknown Groups: Do not easily join discussion groups using the digital yuan as a name to prevent falling into a scam trap.

• Regularly Check Account Balance: Regularly check the digital yuan account balance to detect anomalies promptly.

• Report Promptly: If any suspicious fraudulent activity is discovered, report it to the public security organs or relevant departments immediately.

Progress and Future Outlook of the Digital Yuan Pilot Program

Since its research and development began in 2014, the digital yuan pilot program has steadily progressed. To date, the digital yuan has been piloted in multiple provinces and cities, with its application scenarios constantly expanding to cover wholesale and retail, catering and tourism, education and healthcare, and other fields. The "scorecards" released by several pilot regions show that the application scale of the digital yuan continues to expand, and the transaction volume continues to grow, bringing convenience to residents' lives. For example, Shanghai has launched nearly 2 million digital yuan application scenarios; the number of digital yuan wallets opened by operating institutions in Shenzhen has increased significantly; and Guangzhou has opened more than 14 million personal digital yuan wallets.

In the future, the promotion and popularization of the digital yuan will require improvement from multiple aspects such as technology, law, and policy, requiring good financial infrastructure support, while also strengthening publicity and education to increase public understanding and trust. The application scenarios of the digital yuan will also be further expanded to play a greater role in promoting the development of the digital economy and improving the inclusiveness of financial services.

Conclusion

With the promotion and popularization of the digital yuan, we need to remain vigilant and guard against digital yuan scams. Only by enhancing risk awareness and mastering prevention measures can we effectively protect our own property safety and maintain the stability of the financial market. At the same time, we hope that relevant departments will increase publicity efforts, popularize knowledge about the digital yuan, help the public better understand and use the digital yuan, and jointly create a safe and reliable application environment for the digital yuan.