The Safely Sourcing China Blog

China Scam – Money Mules – And Why You Will Never See Your Money Again.

I’d like to point out to you, in very clear and marked terms, just why it is you will never see your money again, should you happen to lose to a scam in China; particularly those of you who lose money to companies whilst trying to buy iPhones, Nintendo, etc.

Last week, I wrote about Mr. Stefano Carboni’s apparent involvement in the money mule scam; that is, getting other people to transfer funds through their personal bank accounts, as a means of laundering it to a final destination.

Then only this week, I discover, through certain of my contacts here in China, the reason you won’t ever see your money again is based on similar grounds.

Here is how it works:

There are approximately 300 million agricultural workers in China, and approximately 40 million migrant workers travelling from city to city in attempts to find some kind of living. So, no shortage of potential mules!

A quick review of salaries in China may provide you with a glimpse at the motivation behind the actions I’m about to describe.

In 2007 the average farmer in China earned around 4,140 RMB (Yuan) or approximately $605 USD per annum; the average salary for a construction worker in China is approximately 1, 064 RMB (Yuan) or $122 USD per month; whilst the average factory worker is earning around 1,100 RMB (Yuan) or $ 160 USD per month.

As can be seen, by the above figures, the 300 million farmers in the agricultural sector earn less than 30% of what construction and factory workers can earn in a year.

This fact is widely known in China, and it is to this sector of the community that the scammers go with their offer.

So, what is their offer?

It’s very simple, actually.

They say to the peasant farmer, something along the lines of, “Look we have all these foreign clients, but we don’t want to pay tax and stuff, and so we need an alternative account for the funds to be transferred to, as a means of avoiding the tax. You open a bank account for us using your ID, our foreign clients transfer funds to it, and then move the funds on to another account, the details of which we’ll give you (usually Taiwan); and we’ll pay you a nice fat commission, and you and your family will be much better off. Your child will be able to go to a better school, and then on to university, and the whole future of your family will be changed for the better – forever.”

Of course, from Taiwan, the money is then transferred to other destinations.

So, the peasant, knowing a good thing when he or she sees or hears one; and who is always willing to make extra money for the family, says, “HaoDe!” or “HaoLe!” (Good! or Fine with me!).

I mean, why wouldn’t they? People in the West do exactly this when they get involved in fake cheque scams, and act as money mules for a variety of mafias.

In actuality, the Chinese peasant farmer, quite probably has a better excuse than the greedy money-grabbing buggers in the West, who regularly sign up for this kind of business, as their lifestyles are a millennia apart, and is clearly documented and attested by many more than myself.

So, personally speaking, I can’t really blame them; you make your own decision on that.

Anyway, of course, eventually the whole thing gets tumbled, and the account closes, and the scammers recruit another peasant farmer, and start the whole operation again, with barely a blip in their action.

The previous peasant farmer account holder is questioned by the police, and the police learn nothing, as the peasant farmer was him or herself duped anyway, and has absolutely no idea of the true identities of the people they’ve been dealing with.

And, naturally, a physical description isn’t going to help much.

I understand that to many foreigners, everyone may look the same here, but, that isn’t true, of course. People here do have very distinct personal physical attributes.

However, without wishing to sound racist, and by sticking to reality, whether it pleases us to do so or not, the general physical characteristics are certainly much of a muchness; in as much as hair, skin, and eye colour, or whether he or she looked like an East European, had a certain Latino appearance, or shocking red hair and green eyes.

I mean, can you imagine the interrogation of the peasant?

Policeman 1: So, what did this man look like?

Peasant: Well, he was maybe 30 years old, about 5 feet 6 inches, had short black hair, yellow skin, slanted dark brown eyes, and a wide or flat nose.

Policeman 1: O.K., So we can rule out all the women and men under 30 years of age in the country. That just leaves the rest of the population. Hold on! What Kind of accent did he have?

Peasant: He sounded like he came from Henan Province to me.

Policeman 1: Ah ha! From Henan you say. Well, that’s a lucky break for us, as there are only 100 million people in Henan. So, if we discount all the women, that brings us to about 70 million males.

O.K. that’s god, that’s good… Then we discount those under 30 years of age. and those above 40 years of age… Let me see… Yes…, that leaves us with only… Great Scott! Only 21,000,000 men to search through; By George! We’re on to them now. You can tell Mr. Stupid Bugger in England, that we’ll soon have his $300 dollars back for him.

Policeman 2: But, Sir. What if the perpetrator doesn’t live in Henan anymore, and is living… well… …somewhere else in China?

Policeman 1: Damn it, Caruthers, you’re right! Stop that telegram to Mr. Stupid bugger in England. Now, (He paces the room thoughtfully, clenched fist, arms folded and thumb to top teeth, looking into nothingness on the floor before him) Mmmm… yes… Yes, this really puts the cat amongst the pigeons. I think this may take a little longer than I at first thought.

And that’s it basically.

That’s why, if you lose your money here, the chances of you  ever seeing it again, are about the same as you taking a bath, and a nuclear submarine surfacing in it, raking you with machine-gun fire, stealing your rubber duck, submerging, and then going back to base for debriefing, a plate of hot and crispy cod and chips (fries) with brown sauce, washed down with a warm cup of  hot cocoa, and all before bed-time.

Now, if you’re sensible, then you’ll go back to the OLD FASHIONED WAY of doing things, and hire an agent, like me, to protect your interests, and to ensure that you don’t find yourself taking a bath with a submarine.

The choice is yours. You’ve been warned. Again!

Safe Trading!

Related articles by Zemanta

• China’s farms (news.bbc.co.uk)
• China’s Migrant Workers. The Revolution Will Have To Wait. (chinalawblog.com)

Originally posted 2009-08-13 04:05:42. Republished by Blog Post Promoter

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This entry was posted on Friday, January 22nd, 2010 at 3:49 PM and is filed under General Information, Scams And Scammers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.