Uncover the online pyramid schemes specifically targeting the middle-aged and elderly population! Members spread across the country for development | Rewards | Groups

Release time:Apr 14, 2024 04:07 AM

Advocating the concept of a "fourth party payment platform", developing new members can earn rewards, and friends call it a "stable sideline"... 65 year old Wang Fang couldn't help but be tempted by these. Until she recharged 46000 yuan to become the "county agent" of the "NetEase Jia" platform, her dream gradually shattered. The police of the Economic Investigation Detachment of Yangpu Branch of Shanghai Public Security Bureau, after deep excavation, finally tore off the gorgeous coat of "Netlink Jia" and destroyed a family style online pyramid selling organization. A total of 16 suspect were arrested, involving more than 35 million yuan. Compared to traditional offline pyramid schemes that attract people, online pyramid schemes rely on contactless, networked, and decentralized online platforms for rapid dissemination, with a wider range of influence and stronger concealment. In recent years, they have shown a more widespread trend.

The temptation of "three candies"

Wang Fang recalled the entire process of joining "NetEase Jia", as if someone was holding three tempting candies and showing them to her one after another, ultimately leading her in. The first candy is called a stable sideline. That was in 2021, a friend chatted with Wang Fang and said that elderly people are approaching retirement and need to realize their own value. In her explanation, "NetEase Jia", which integrates fourth party payment platforms, e-commerce, and new consumer experiences, is a career oriented towards the future and benefiting the public, and also a stable and comfortable sideline. Taking herself as an example, she earns nearly ten thousand yuan per month after joining the platform. With just a few clicks and sending WeChat introductions to friends, she can easily earn money. The second sugar is "small investment with big return". Friends repeatedly emphasize that becoming a member of "NetEase Jia" costs less than 200 yuan, and becoming a diamond member costs less than 1000 yuan. As long as you attract three friends, you can recoup your investment. "If you become a senior agent, earning tens of thousands of yuan per month is also very easy, the higher the level,",

The more rewards and profits there are. Wang Fang believed it. In December 2021, she downloaded the "Wanglianjia" application through the QR code shared by the other party, paid a membership fee of 988.8 yuan, and became a diamond member. She can receive a reward of 60% of the membership fee from lower level members and also receive a profit sharing ratio of 90000. The so-called reward actually refers to the share of membership fees paid offline; And profit sharing refers to the commission sharing of each transaction by members. The public security organs have determined that "NetEase Jia" has not established an e-commerce system that matches its promotion. The website's functions are very simple, and the most commonly used feature by members is actually the credit card cashout function - borrowing the shell of the online mall, "NetEase Jia" cooperates with third-party payment institutions to provide credit card cashout services to members, earning transaction fees from it. Wang Fang was kept in the dark and actively developed membership. After joining "NetEase Jia" for a month, she was encouraged by her friend to come to the office of "NetEase Jia"'s operating company and immediately paid a membership fee of 46000 yuan to become the county agent. Being a county agent means that Wang Fang can receive 65% of the membership fee for offline and unlimited offline members, and the profit sharing ratio has also been increased to 11% per transaction. The friend immediately gave Wang Fang a third candy and said, "If you work hard, you can become an operating partner, enter the core layer, and in the future, you can get shares when the company goes public.". For the next month or so, Wang Fang seemed mesmerized, doing nothing every day. Holding her phone, she shared the company lecturer's preaching and QR code links with friends of similar ages, encouraging them to join the "Internet Connection Jia". However, the effect was not ideal. Wang Fang had a total of 4 downlines, and after each of them paid 988.8 yuan to become a diamond member, she received a reward of more than 1800 yuan proportionally. As time goes by, the anticipated sweetness gradually becomes bitter. The first sugar has not yet been realized, the second sugar has also shattered, and the third sugar is nowhere to be seen, with returns far below investment, and the "stable sideline" is on the verge of collapse.

Two sides of technology companies

I have tried my best, but I can no longer attract new people. More than half a year has passed, and there is almost no hope that the investment of 46000 yuan will be recouped. It was only then that Wang Fang revealed to her daughter the true situation of her participation in "NetEase Jia". The daughter realized there was fraud and took her mother to report to the public security organs. Upon hearing these words, Jin Li, a police officer from the Economic Investigation Detachment of the Yangpu Branch of the Shanghai Public Security Bureau, quickly concluded that it was another form of online pyramid scheme. But it is not so simple to file an investigation and obtain evidence that meets judicial requirements. From the surface, "Wanglianjia" appears to be just an ordinary e-commerce platform with payment functions, but the application cannot be found by directly searching for its name in the app store. It can only be downloaded and run through the QR code shared by old members. More unusual things are gradually revealed in front of investigators: the prices of goods in the "NetEase Jia" shopping mall are significantly higher than the market price, and sales are very low; The so-called commercial link actually refers to members using credit cards to make purchases at their own merchants, freely inputting the consumption amount through a cooperative third-party payment platform, and finally entering the bank card bound to the member. "This company registers every member as a merchant and uses the shell of the e-commerce platform to evade regulation. Essentially, it is a credit card cashout platform. Compared to other illegal credit card cashout channels, this platform has lower transaction fees." In Jinli's view, this is the main attraction for "NetLianJia" to develop members. On the other hand, ancient pyramid schemes such as "free travel" and "one yuan exchange for gold jewelry" are also very attractive to the main target group of "NetEase Jia". The police investigation found that "NetLianJia" has repeatedly summoned members of diamond and above levels to Zhejiang, Yunnan and other places to organize meetings and training under the name of team building, with lecturers teaching professional language skills to pull people's heads. In online shopping malls, the operator of "NetEase Jia" has also launched promotional activities such as "one yuan flash sale" to attract new members to pay and join. Wang Fang remembers that her friend who brought her in often muttered words like "facial recognition payment" and "third-party payment", saying, "I didn't go into detail about the specific things, it sounds like something quite impressive.". Tearing off all kinds of clothing, the operating company behind "NetEase Jia" - Shanghai Juyingke Digital Technology Co., Ltd., except for a few founders, the rest of the personnel are finance, sales, and customer service. The technical personnel responsible for application software development and operation are all part-time employees of third-party companies.

Uncover the online pyramid schemes specifically targeting the middle-aged and elderly population! Members spread across the country for development | Rewards | Groups

Typical pyramid scheme architecture

Does the model of "NetEase Jia" belong to online pyramid schemes? Clarifying and fixing the criminal evidence in these two key links is the biggest challenge faced by Jin Li and his colleagues, as it depends on both the revenue method and the membership level. Unlike traditional offline pyramid schemes, online pyramid schemes involve a wide geographical distribution of participants, a loose personnel structure, and complex fund flows. "We collaborated with professional institutions to sort out and statistically analyze millions of pieces of data from 'NetEase Jia''s own backend and third-party payment platforms, and found that 'NetEase Jia' has a fund flow of up to 850 million yuan. 'Jinli explained that this amount is only the amount of fund flow for credit card cashouts, and according to the platform's regulations, a handling fee of 72 yuan is required for each 10000 yuan cashout.' Roughly speaking, the revenue from handling fees alone can reach millions of yuan. '".

This is not a big head yet. The police investigation found that the majority of the profits of "NetEase Jia" were membership fees, which reached 35 million yuan in less than a year. "NetEase Jia" divides members into 6 levels: Gold, Platinum, and Diamond. Members can be upgraded by recharging their membership fees; The three high-level members, namely operation agents, operation partners, and operation centers, need to meet the target of offline development quantity in the later stage in order to upgrade. "The lowest gold member is a recharge of 198.8 yuan, while the diamond member is 988.8 yuan. For operational agents and higher-level members, they can initially be promoted directly by paying membership fees of 50000 yuan, 100000 yuan, and 250000 yuan. However, the requirements have changed in the later stage, and a sufficient number of downlines need to be developed to be promoted to agents." Jin Li said. Through the fission promotion and marketing of the Internet, "Netlink Jia" has grown rapidly, and its members are all over the country. As of the incident, there were nearly 420000 registered users, including over 350000 participants who registered with real names and paid membership fees. According to police statistics, the majority of these participants are middle-aged and elderly people over 50 years old. "The phrases such as' unleashing surplus value 'and' stable sidelines' are all aimed at this age group. The same goes for the credit card cashout function, which sells low transaction fees to attract them to become members." Jin Li said. After nearly half a year of investigation, the police have obtained conclusive evidence that "NetLianJia" is engaged in online pyramid scheme criminal activities. The actual controller of the platform operation company, Cao, and his cooperating family style criminal gang have been successfully arrested. According to the Criminal Law and relevant judicial interpretations, the crime of organizing and leading pyramid schemes should have objective characteristics such as "entry fees", "hierarchical structure", and "pulling people's heads". The organizers of online pyramid schemes have done their utmost to disguise themselves in order to evade supervision and cover up criminal activities. "On the surface, 'NetEase Jia' does not display its hierarchy to the public, and the profit making methods of its members are not directly linked to the number of new recruits." Jin Li introduced, but in the backend system of 'NetEase Jia', higher-level members can earn profits through members who have developed offline, indicating that it has a substantial hierarchical relationship. The police also confirmed that the development level of "NetEase Jia" can reach up to 32 levels, which means that an old member charges a reward of 32 levels of offline membership fees. This unlimited payment method is a typical pyramid scheme architecture. On the other hand, the financial arrangements and proactive activities of all members of "NetEase Jia" revolve around how to lure members to pay membership fees and make profits for themselves. "This is in line with the fact that pyramid schemes do not create value in criminal activities. They use the participants' property to pay former participants and deceive them by developing offline profits."

Attack and prevention of online pyramid schemes

If it weren't for Wang Fang's alarm, "NetEase Jia" might have continued to operate. Jin Li candidly stated that the concealment and confusion of online pyramid schemes pose significant challenges in curbing such crimes. "Participants in pyramid schemes often have a sense of luck. When collecting evidence from pyramid scheme participants in actual cases, many people are unwilling to cooperate and still have illusions about the continued development of pyramid schemes to recover investment losses. They even want to pass the 'thunder' to the next party to avoid their own losses." Another police officer who participated in the investigation of pyramid schemes said. Similar to the operation mode of "online shopping", the new type of online pyramid selling not only spreads rapidly, spreads widely, and has strong concealment, but also has many names. Illegal people often distort popular concepts such as digital currency, blockchain technology, metauniverse, Internet financial innovation, and point rebate, which confuse the public and confuse the public. In addition, the construction technology of pyramid schemes websites is simple, replicable, and the cost of illegal activities is low. Criminals can also operate multiple pyramid schemes simultaneously. "These people are familiar with criminal techniques and the speculative psychology of participants, and constantly innovate. Some choose to do 'short-term' business to avoid cracking down, and create a new platform to deceive a wave of money. They immediately change their appearance, and the speed of cracking down cannot keep up with the speed of changing their 'vests'," said the police officer. The public security department is using big data analysis and other means to timely warn of abnormal trading behavior, improve interception and precise crackdown capabilities, and strive to "crack down on online pyramid schemes when they appear". At the same time, the public security department also strengthens the coordination and linkage with market supervision, banks and other departments and institutions, enhances the ability to prevent risks of online pyramid schemes, and jointly crack down on various types of pyramid schemes activities. "The public should recognize that participating in pyramid schemes not only causes property damage, but may also be suspected of illegal activities, and should not have a mentality of luck and speculation." Professionals believe that while relevant departments destroy the pyramid scheme organization system in accordance with the law, the public should also raise awareness of prevention and compliance. For example, police officers said that capital operations, consumer rebates, original stocks, recommendation awards, etc. are all common terms in pyramid schemes. "Be vigilant when you see these words.". Secondly, we should remain highly vigilant about behaviors such as "income gate fees" and "offline". In most cases, pyramid schemes are a money circulation game where funds are divided between online and offline investments. The public should also increase their vigilance against investment traps such as high returns and high returns, and report pyramid schemes in a timely manner once discovered to jointly maintain a good social and economic order.

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