According to China Securities News, Jiangsu provincial court has recently indicted criminal charges involving several types of fraud targeting the elderly.
More than 1,500 elderly are the victims of the crime, and the financial involvement was around 2 billion yuan (300 million dollars) in those cases.
The court found 19 alleged people guilty of the crime and charged them with up to life prison sentence.
Jiangsu High Court specifically disclosed several conspiracies that the criminals used to victimize the elderly.
In most of these scams, the criminals first gain trust from the victims and then offer them too-good-to-be-true investment and finally run away, leaving the victims empty-handed.
Nursing Home bed investment: In this scam, leaflets are distributed on farms, parks, and other places where the elderly group gathers to lure the elderly to participate in activities. After paying a fee of 20-30 yuan (3 to 5 dollars), the salesman takes victims on tourism trips to gain trust. Then, the so-called “mentor” and “investment analyst” offer the victim a place to invest, in the form of a bed, in a nursing home for 12,500 to 300,000 yuan (1,900 to 45,000 dollars).
They claim that if the bed is used, the corresponding fees will be deducted. If the bed is not used, the rental income will be paid on schedule. The rental income will be doubled after additional investment, and the original investment is pledged to be returned when due. Once the deal is signed, and the money is collected, the criminals run away.
Investment in last resting place projects: In this scam, criminals exploit the elderly’s concern about their lasting places in Chinese culture. They set up some asset management companies, organize sales teams, and promote last resting place projects to the elderly through cocktail parties and other types of promotion. The projects are offered with high returns. Again, the criminals run away once the deal is signed and the money is collected.
Another type of scam, criminals send pre-taped portable devices to the elderly with advertisements for certain counterfeit or low-quality products as gifts. The elderly will mistakenly think the products are authentic and call them to buy.