China's Police Warn of Fraud Targeting Minors Using Virtual Currencies for Cross-Border Money Laundering

According to China's Ministry of Public Security Cyber Investigation Bureau, authorities have issued a warning about a new fraud scheme targeting minors that uses virtual currencies to launder stolen funds across borders. The scheme typically begins with scammers posting advertisements on gaming and social platforms to recruit minors, then impersonating law enforcement to threaten and extort money from their parents' accounts. The stolen funds are then split and converted into virtual currencies through underground platforms, which are transferred across borders without geographical restrictions to overseas fraud operations, completing a financial "physical isolation."

The Bureau emphasized that legitimate law enforcement agencies never conduct online investigations, make threatening demands for payment, or request passwords or verification codes.