Police in Zigong, Sichuan Province have made significant progress in recovering funds from a major telecom fraud case, but they still need help finding dozens of victims to return the remaining money.
After nearly two years of work, officers from the Anti-Fraud Center of the Yantan District Public Security Bureau have contacted more than 120 victims across the country and returned over 3.15 million yuan to more than 60 of them. The gratitude has been overwhelming, with more than 50 banners sent from all over China, so many that they can no longer fit on the office wall.
The case involves a total of 4.5 million yuan in fraudulent funds. While a significant portion has been returned, over 1.3 million yuan remains frozen in the police bureau's public account, earmarked for about 60 victims who have yet to come forward and verify their identity. Police are now appealing to the public and media to help locate these remaining victims.
Tracking down a "tool man" in a sham storefront
The investigation began in August 2024 when a man from Guangxi, identified only by the pseudonym Sun Chao, arrived in Yantan District. Tasked by a fraud ring, he rented a storefront, stocked it with cigarettes, alcohol, and tea, and set up a seemingly legitimate tobacco and liquor shop.
The real purpose of the store was to obtain a business license, a corporate bank account, and a POS terminal, which would then be handed over to an upstream telecom fraud gang to receive and launder stolen funds. Once the paperwork was complete in early September 2024, funds began flooding into the merchant account. Within just two days, the account received more than 5 million yuan, with 540,000 yuan coming in on the first day and over 4.5 million yuan on the second. The suspicious rapid inflow and outflow triggered the bank's risk control system, and the bank notified Sun Chao to come in and resolve the issue.
When police arrived at the bank, Sun Chao claimed he had been hired by a local friend for a high salary of over 8,000 yuan to watch the store. However, he could not provide any details about his supposed employer. The unusually high pay for a simple shopkeeper in Zigong raised red flags, and under questioning, Sun Chao quickly confessed to acting as a "tool man" for the fraud syndicate. He was later convicted of aiding criminal activities and sentenced to more than three years in prison.
During the investigation, police also arrested two accomplices who had been monitoring Sun Chao from outside the bank. The pair fled after his arrest but were tracked down and captured in Fujian Province. Unfortunately, the masterminds behind the operation remain at large, as all communication was conducted through encrypted messaging apps and records were deleted after the crimes.
Rebuilding trust one victim at a time
After the arrests, police froze the 4.5 million yuan in funds. However, returning the money proved to be a complex task. Bank records showed the funds came from over 120 victims spread across provinces including Shandong, Heilongjiang, Jilin, and Guizhou, with very few in Sichuan itself. After lengthy legal procedures, the funds were finally transferred to the police bureau's account in January 2026, and the painstaking work of identifying and contacting victims began in April.
One of the biggest challenges was that many victims had not reported the crime. The fraud typically began with promises of high returns on "investment and wealth management" platforms, luring victims into depositing membership fees before escalating into "task scams" and demands for "security deposits." Many victims were too ashamed or afraid to tell their families and avoided contact with authorities.
"When we called, many people thought we were the new scammers," said investigator Gao Lishan. Some victims hung up immediately, while others, feeling hopeless, told police to just keep the money. To prove their legitimacy, officers used creative methods, including video calls showing the police station, sharing their location, and displaying their badges. They also worked with local police and contacted victims' relatives to help get the message through.
One victim, a small business owner from Jiangxi in her thirties, lost more than 100,000 yuan, nearly all her savings, which were meant for her children's school fees. She was among the first to receive her money back, a moment of immense relief and gratitude for the officers.
So far, police have returned over 3.15 million yuan to more than 60 verified victims. The influx of thank-you letters and banners has been so large that the office wall is overflowing, a sight that new officer Xiao Yu, tasked with organizing them, says is both heartwarming and overwhelming. Gao Lishan, who has been a police officer for ten years and in anti-fraud work for four, said the hard work has been worth it, especially seeing the smiles on the faces of victims and their families.
Call for remaining victims to step forward
Despite the progress, about 1.3 million yuan remains in the police account, waiting for around 60 victims who have not yet come forward. Some may have lost smaller amounts, while others may still be hesitant to report the crime. The police are urging anyone who has been a victim of a similar telecom fraud involving investment schemes and who transferred money to the involved accounts to contact the Anti-Fraud Center of the Yantan District Public Security Bureau immediately at 0813-4703416. Victims can call to verify their information and, upon confirmation, complete the process to have their funds returned.
Police also took the opportunity to warn the public about the dangers of lending or renting out personal bank cards, phone cards, or business licenses. In this case, Sun Chao did not directly commit the fraud but became a key link in the criminal chain by providing his credentials, resulting in a prison sentence. Officers remind everyone that helping strangers transfer or withdraw money of unknown origin could constitute a crime. Anyone encountering suspicious investment or transfer requests should call 110 or the anti-fraud hotline 96110 for assistance.