China Watch Blog

China Watch Blog has learnt that Alibaba Group Holding Ltd, China’s biggest e-commerce company, plans to step up efforts to fight counterfeiting, which the company head says is the biggest obstacle for its future development.

China Daily reported that the Hangzhou-based company will spend “as much as it can” to tackle counterfeiting problems on its e-commerce websites, said Shao Xiaofeng, Alibaba’s chief risk officer.

The company will set up a committee for intellectual property rights protection this year, which will have Lu Zhaoxi, its new CEO starting on May 10, as head and Alibaba’s different business division leaders as members, Shao said.

The effort came after the company was removed from the United States’ yearly list of the world’s most “notorious markets” last year because of its improvement in reducing counterfeits.

“I am afraid that something we notice but don’t prevent today will eventually grow into a cancer for a company’s future development. … That’s why I think I will surely regret it if we don’t do well in fighting counterfeits,” Ma Yun, Alibaba’s chairman, said at his last news conference before he officially steps down as CEO on May 10.

About 2,000 employees at Alibaba are responsible for protecting intellectual property rights.

Last year, Alibaba dealt with 94 million items that infringed copyrights and handed out punishment 900,000 times, it said.

In the first three months of this year, China’s public security organs have dealt with 3,747 counterfeit cases, which involved a total value of 24.2 billion yuan ($3.91 billion), said Meng Qingfeng, head of the Economic Crime Investigation Department of the Ministry of Public Security.

In December, a report from the United States Trade Representative said that Taobao, owned by Alibaba, “has worked with rights holders to significantly decrease the listing of infringing products for sale through its website, and has committed to continue working to streamline its complaint procedures to further reduce listings of counterfeit products”.

China Watch Blog has learnt that Thai police have arrested three Nigerian men and a Thai woman for allegedly operating an online relationships scam and swindling eight million baht from 18 women.

The Bangkok Post reported that police arrested the suspects on outstanding warrants issued by Chiang Mai Provincial Court at an apartment in Ramkhamhaeng Soi 8 in Bangkok’s Bang Kapi district on Monday.

They seized four ATM cards, a mobile phone and a notebook containing the names of more than 100 women.

Those arrested were identified as Shinonsu Esaeokae, Chidi Enva, Pios Ennajee, and 32-year-old Thai woman Aunchittha Prasertsri, Pol Lt Gen Panu Kerdlarppol, head of the Immigration Police Bureau, told a press briefing on Tuesday.

The Nigerians would pose as wealthy people, using photos of good-looking US and European men when communicating with their targets through chat programmes and social networking websites including Facebook, Pol Lt Gen Panu said.

They web-chatted with the women for between one month and one year to convince them they loved them.

The conmen then told the victims that they had shipped valuables to them as gifts and showed them photos of the alleged expensive goods and fake invoices. In some cases, the gang claimed to have bought a house or a car for the woman.

When the shipment failed to arrive on time as promised, Mrs Aunchitta, who posed as an embassy official, would contact the victims and tell them they had to pay customs duty on the deliveries in order to receive them.

If the victims believed them, the conmen would ask the women to transfer money to them.

The internet fraud gang was believed to have 70 members and the gang’s leader was in Malaysia, Pol Lt Gen Panu said.Police investigations were continuing.

China Watch Blog reports that many people are unaware that cyber criminals target mobile devices – or think that putting a four-digit PIN code on their phone is sufficient protection.

But yahoo reports that cybercrime on mobiles is already real. In the UK, 22% of users report that they have received text messages requesting that they click a link or dial a number to access a ‘voicemail’ message – a common attack used by cybercriminals

App stores such as Google’s Play are also filled with ‘fake’ apps – often made to look like real hits such as Angry Birds – which can infest phones with adverts or even run up huge bills calling numbers abroad.

Mobile adware – or ‘madware’ – attacks have risen 210% in the past year, according to figures from Norton.

‘Your smartphone is as sophisticated if not more than your PC,’ says Norton’s director of security response, Kevin Haley. ‘It has all the same information, it’s got your work information and your personal information. It even has financial transactions on it. Why wouldn’t the bad guys target it?’

Safe use of smartphones will come into focus once more on Tuesday, February 5 (that is today), which is the tenth Safer Internet Day.

China Watch Blog has learnt that Zhejiang authorities found many shark fins sold in the market are artificial products with some containing excessive levels of cadmium, which is a toxic metal.

The industry and commerce department in Zhejiang province conducting a check of shark fin soup, a popular dish often served at luxurious banquets.

It found many restaurants serving artificial shark fins made of edible gelatin and seaweed gum.

Restaurants purchase the “shark fins” at a low price, but they are sold for up to 1-thousand yuan a bowl in restaurants and hotels.

Similar results were found in another investigation by the province’s consumer rights protection agency as no shark was found in any of the soups.

The consumer rights protection agency also found that about one-third of dried shark fin in the province’s markets contained excessive cadmium and methyl mercury.

Experts say excessive ingestion of mercury can harm pregnant woman and the development of the fetal brain and nervous system.

China Watch Blog has learnt that tourism operators in Thailand have called on local authorities on Wednesday to strictly regulate jet ski renters at Koh Samui after four employees of a jet ski operator assaulted and injured a Swiss tourist.

Thanongsak Somwong, chairman of the Koh Samui tourism promotion association, said business owners and tourism operators wanted concerned agencies to impose stronger controls on more than 50 jet ski owners who are operating on Koh Samui’s beaches.

Mr Thanongsak said some operators took advantages or threatened physical attacks. He blamed state agencies for failing to crack down on rogue jet ski owners, resulting in a repeat of the similar incident.

On Tuesday, a 27-year-old Swiss tourist, Buja Kajumai, was reportedly beaten by four men who worked for a jet ski owner at Chaweng Beach. The four accused Mr Kajumai of crashing a craft which he rented from them and asked him to pay for damage. The tourist denied he harmed the craft, and refused to pay. The men reportedly attacked and beat him.

The four suspects have been charged them with physical assault and kept in police custody.

Police on Wednesday went to the scene to question additional witnesses and record information of more than 30 jet-ski owners and employees operating along the Chaweng beach.

In Pattaya, many tourists and expats regard the jet ski scam run by mafia-like operators on the resort town’s beach as the most critical issue for visitors. A similar situation exists in Phuket.

In the scam, people who rent jet skis are forced to pay inflated sums for repairs when they return the craft. The jet skis already have superficial damage before they are rented out, but the customers tend not to notice as the damage is usually on the underside of the craft, obscured by water.

China Watch Blog warns its readers NEVER to give personal info on the phone, even if you are in a hotel.

A friend arrived at his hotel and checked in at the front desk. When checking in, the friend had given the front desk his credit card (for all the room charges as well as deposit). He went to his room to settle in.

The phone in room rang. Someone called and said he was from the front desk and asked whether he was in Room 620-which happens to be his room.

My friend answered and the person on the other end said the following:

“This is the front desk. When checking in, we came across a problem with your charge card information. Please re-read your credit card number and verify the last 3 digits on the reverse side of your charge card.”

Not thinking anything, my friend gave this person this information, since the call seems to come from the front desk. But actually, it was a scam. Someone was calling from outside the hotel and pretended to be the front desk.

The fraudsters usually ask for a random room number. Then, ask you for credit card information and address information. They sound so professional, that you give it to them, thinking you are talking to the front desk.

If you ever encounter this problem on your vacation, tell the caller that you will be down at the front desk to clear up any problems.

Then, go to the front desk and ask if there was a problem.
If there was none, inform the manager of the hotel that someone called to scam you of your credit card information, acting like a front desk employee.

My friend was duped, and is still cleaning up the mess.

So travellers please be aware of this racket.

China Watch Blog has learnt that the so-called Nigerian inheritance fraud has now expanded operations to reach potential victims via phone text messages or SMS.

So beware, of these inheritance “good news” or “get-rich” schemes, which are fast expanding their con-games.

Please read past articles under our category fraud & defaulters.

There is no such thing as “easy money”. There is always a catch, so don’t be fooled.

People who fall for these kinds of fraudsters are usually those who are “greedy”. The fraudsters will trap you with a story, and ask you to pay a lawyer’s search fee, or registration fee or something like that. The real con is the fee which they will ask you to pay in order to get the inheritance or the supposedly reward.

China Watch Blog reports that during International Fraud Awareness Week (11-17 Nov.), the Association of Certified Fraud Examiners (ACFE) provides these and other simple steps any organisation can take to help manage risk and decrease losses:

Be proactive.

Establish and maintain internal controls specifically designed to prevent and detect fraud. Adopt a code of ethics for management and employees. Set a tone at the top that the company will not tolerate any unethical behavior. Implement an employee reporting system, such as an anonymous hotline, to help uncover fraud.

Establish hiring procedures.

Every company, regardless of size or industry, can benefit from formal employment guidelines. When hiring staff, conduct thorough background investigations. Check educational, credit and employment history (as permitted by law), as well as references. After hiring, incorporate evaluation of the employee’s compliance with company ethics and anti-fraud programs into regular performance reviews.

Train employees in fraud prevention.

Once carefully-screened employees are on the job, they should be trained in fraud prevention. Are employees aware of procedures for reporting suspicious activity by customers or co-workers? Do workers know the warning signs of fraud? Ensure that staff know at least some basic fraud prevention techniques.

Conduct regular audits.

High risk areas, such as financial or inventory departments, are obvious targets for routine audits. Surprise audits of those and all parts of the business are crucial. A good starting point in identifying fraud risks and establishing a strategy to prevent such losses is ACFE’s Fraud Prevention Check-up (PDF): http://www.acfe.com/fraud-prevention-checkup.aspx.

Call in an expert.

For most firms, fraud examination is not a core business component. That’s why, when fraud is suspected or discovered, it is imperative to enlist the anti-fraud expertise of a Certified Fraud Examiner (CFE). The CFE credential is recognised by businesses and governments worldwide as the standard for fraud investigation, prevention and detection.

Hundreds of businesses and agencies worldwide have partnered this week with the ACFE, the world’s largest anti-fraud organisation, to participate in International Fraud Awareness Week to promote anti-fraud awareness and education.

The grassroots movement shines a spotlight on the issue during a time when organisations around the world are losing an estimated 5 percent of their annual revenues to fraud, according to an ACFE study released earlier this year. Applied to the 2011 Gross World Product, this figure translates to a potential projected annual fraud loss of more than $3.5 trillion.

Suppoters are engaging in various activities during the week, including: hosting fraud awareness training for employees and/or the community, assessing fraud knowledge and risk factors within their organisation, posting articles on company websites and in newsletters, and teaming with local media to highlight the problem of fraud.

ACFE President and CEO James D. Ratley, CFE, said that the support of organisations around the world helps make Fraud Week an effective tool in raising anti-fraud awareness.

“While fraud prevention and detection is a year-round endeavor, International Fraud Awareness Week provides a great opportunity to spotlight this serious problem and stress the importance of anti-fraud training and education,” Ratley said. “Once again, we want to say ‘thank you’ to all of the Fraud Awareness Week supporters around the world for your commitment to the cause,” Ratley said.

For more information about increasing awareness and reducing the risk of fraud during International Fraud Awareness Week, visit www.FraudWeek.com.

China Watch Blog reports that hundreds of organisations worldwide have partnered with the Association of Certified Fraud Examiners (ACFE) to participate in International Fraud Awareness Week, Nov. 11-17, 2012 to promote anti-fraud awareness and education.

The grassroots movement shines a spotlight on the issue during a time when businesses and government agencies around the world are losing an estimated 5 percent of their annual revenues to fraud, according to an ACFE study released earlier this year. Applied to the 2011 Gross World Product, this figure translates to a potential projected annual fraud loss of more than $3.5 trillion (U.S.).

Fraud Week was first organized 12 years ago by the ACFE, the world’s largest anti-fraud organization and premier provider of anti-fraud training and education, in an effort to proactively fight fraud and help safeguard businesses and the economy from this growing problem.

Since then, the list of supporters has grown to more than 700 business, agencies and individuals, many of whom will be engaging in various activities during the week, including: hosting fraud awareness training for employees and/or the community, assessing fraud knowledge and risk factors within their organisation, posting articles on company websites and in newsletters, and teaming with local media to highlight the problem of fraud.

ACFE President and CEO James D. Ratley, CFE, said that the support of organisations around the world helps make Fraud Week an effective tool in raising anti-fraud awareness.

“While fraud prevention and detection is a year-round endeavor, International Fraud Awareness Week provides a great opportunity to spotlight this serious problem and stress the importance of anti-fraud training and education,” Ratley said. “Businesses and organisations who are involved in this campaign show an understanding that spreading awareness is key in combating the worldwide fraud threat.

“Once again, we want to say ‘thank you’ to all of the Fraud Awareness Week supporters around the world for your commitment to the cause,” Ratley said.

In its 2012 Report to the Nations on Occupational Fraud & Abuse, the ACFE found that:

* Fraud schemes are extremely costly. The median loss caused by the occupational fraud cases in the ACFE study was $140,000 (U.S). More than one-fifth of the frauds involved losses of at least $1 million.

* Small businesses are especially vulnerable to occupational fraud. These organisations are typically lacking in anti-fraud controls compared to their larger counterparts, which makes them particularly vulnerable to fraud.

· Tips are key in detecting fraud. Occupational frauds are much more likely to be detected by tip than by any other means. This finding reinforces the need for promoting awareness to foster an informed workforce.

For more information about increasing awareness and reducing the risk of fraud during International Fraud Awareness Week, visit www.FraudWeek.com.

The 2012 Report to the Nations is available for download online at the ACFE’s web site: ACFE.com/RTTN. The Report is in PDF format.

China Watch Blog has learnt that seven members of a fraud gang were recently caught by police after faking car accidents with a fake pregnant woman and swindling compensation from drivers.

They were suspected of involvement in more than 10 similar cases in Shenzhen and Dongguan and were being investigated by Futian District police, the Daily Sunshine reported.

A man surnamed Lin told police that he was driving his Mercedes-Benz in Futian on Sept. 8 when one such “accident” occurred.

“The car in front of me was too slow, so I changed lanes to pass him. Just when I drove into the next lane, according to traffic rules, a man and a pregnant woman suddenly came up on a bicycle and hit my car,” Lin said.

The man told Lin that the woman, whom he called his wife, was three months pregnant. She looked to be in serious pain on the ground, so Lin took the couple to the hospital.

“The man called several relatives while in my car and several people arrived at the hospital just as we got there. They shouted at me loudly and asked me to compensate her. To avoid troubles, I gave them 13,000 yuan (US$2,063) and the other people left,” Lin said. “After the incident was solved, I thought it didn’t feel right and I might have been blackmailed, so I decided to call the police.”

Police said a gang member would intentionally drive slowly so other drivers would have to change lanes to pass him. When a driver changed lanes, another gang member and a “pregnant” woman would hit the car deliberately while riding a bicycle.

The gang targeted drivers of luxury cars to make more money, police said.