As China continues to prepare for the launch of its central bank’s (CBN) digital currency, fraudsters are also actively making themselves heard. Police in a Chinese province are currently warning of a complicated scam by the CBDC.

A fake platform launched in March, according toscammers.

According to a cybercrime official at Weifang Police Station in Shandong Province, a scam called Central Bank International Wallet claims to be a platform for RMB digital wallets. It seems that the fake platform attracted nearly 500 users at the time of going to press.

The scammers announce that the platform gives participants access to a secret CBDC funding fund worth $186 million.

Weifang police referred to an earlier report on the matter, first published by local media Sina. Scammers claim that users of the platform can make a profit of about $24,800.

Although the wallet is not yet online, scammers say the platform will launch in March. However, the cybercrime unit of Weifang police expressed concern because the scammers had already collected users’ personal information, such as bank details and real names, through a smartphone application.

Scammers also claim that the money collected will be used to promote the use of the digital yuan globally and nationally. Moreover, the scammers promised users that they would receive a 2% deposit bonus.

China’s Central Bank warns of false investment opportunities in the digital yuan

The People’s Bank of China is actively warning against the flood of fake organizations claiming to be promoters of the digital yuan. However, according to the Central Bank, these systems appear to be purely pyramid schemes hiding behind multi-level marketing strategies.

The Beijing municipal government recently distributed a total of 10 million yuan ($1.55 million) to 50 000 Beijing residents who had registered for the lottery through mobile phone applications. Users could spend the CBDCs during the Chinese New Year.

What do you think of the Chinese authorities’ warning? Let us know in the comment section below.

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