14 Arrested in Scheme to Defraud Food Delivery Platforms of Millions

Chinese authorities have arrested 14 individuals suspected of operating an extensive fraud scheme that targeted several major food delivery platforms. The criminal syndicate allegedly used "empty orders" and manipulated discounts and subsidies to illicitly obtain over one million yuan (approximately $140,000 USD) in a matter of weeks.

The investigation began when a food delivery platform flagged highly unusual transaction data from a fruit vendor. In one instance, a customer purportedly ordered durian fruit valued at over 3,000 yuan (approximately $420 USD), but after stacked discounts and coupons, the final payment was merely 20 yuan (about $2.80 USD). Similar transactions involving large quantities of fruits like dates and grapes at drastically reduced actual costs were also identified.

Delivery platforms often offer discounts and subsidies to attract consumers and support merchants. The fraudulent group reportedly established multiple fruit shops and hired individuals to act as "order fillers." These individuals would place orders, but no goods were actually delivered. Instead, the merchants would refund the full price paid by the order filler and provide a small incentive. The actual profit was derived from the platform's subsidy payments, which were issued to the merchant once the order was marked as "completed."

Police discovered that the ring generated over 30,000 such fake orders in just over a month. The suspects, including alleged ringleaders, have been apprehended and are facing prosecution. A significant portion of the illicitly obtained funds has reportedly been recovered and returned to the delivery platforms. The case highlights ongoing challenges for e-commerce platforms in preventing fraudulent activities.