Measures to be tougher on cyberfraud

China has strengthened efforts to tackle telecommunications and cyberspace fraud by designing restrictions on not only those conducting the fraud, but also those offering bank or online payment accounts for the fraudsters, as a new guideline was issued on Tuesday.

The guideline, which comprises joint punishment measures for telecommunications and internet fraud and related crimes, was jointly issued by the Ministry of Public Security, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the People's Bank of China, the country's central bank.

According to the guideline, the restrictions will target those who have received criminal penalties for conducting or assisting fraud, as well as people and organizations that sell, rent, or lend accounts and other tools to the fraudsters, including SIM cards, short message service ports and digital renminbi wallets, more than three times.

Those who help perform real-name authentication more than three times for such tools used by fraudsters will also be subject to the restrictions.

Zheng Xiang, deputy head of the criminal investigation department of the Ministry of Public Security, said the measures, which will take effect on Sunday, were introduced to better curb telecommunications and cyberspace fraud, as such crimes are a rapidly growing problem.

A large number of people engage in the business of offering the tools needed for such fraud, Zheng said, adding that a handful of companies and people also offer technical services to circumvent the real-name authentication that is required for accessing financial, telecommunication, and internet services.

The guideline also said the offenders will be included in the country's list of seriously dishonest entities for engaging in telecommunications fraud and cyberfraud, and their information will be uploaded to a national platform that shares credit information.

Xing Xiaodong, deputy head of the Department of Fiscal and Financial Affairs of the National Development and Reform Commission, said the platform will forward the information to other authorities so that those authorities can ensure that specific restrictions are imposed on the people on the list.

The restrictions include preventing those on the list from conducting transactions with their bank accounts and digital renminbi wallets through channels other than over the counter. Those who face restrictions also will not be able to use their online payment accounts, except when they transfer money from the accounts to bank accounts under their names. Neither will they be allowed to open new online payment accounts.

The functions of telecommunication vehicles under their names, including SIM cards, landline telephones, and SMS ports, will be restricted. Telecommunications companies will not be allowed to provide these new products to them. Telecommunications and internet service providers are also prohibited from launching websites and distributing applications for them.

The restrictions for offenders will last for at least two years, but should not exceed five years, and the offenders should be removed from the list when the restrictions expire, according to the guideline, which also emphasizes the rights of those who face the restrictions.

The police should inform offenders, in person or by mail, of the reason for restrictions to be imposed, what restrictions will be imposed, the time limit, the rights to appeal, and the channels through which appeals can be made, it said.

Yang Qing, deputy head of the Payment and Settlement Department of the People's Bank of China, advised the public to refrain from selling, renting or lending their own bank accounts, online payment accounts, or digital renminbi wallets to others.