As telecommunication fraud continues to grow exponentially, with reported losses in 2022 of $530 million in Canada^[1] and nearly $40 billion in the United States^[2], it's never been more important to stay informed and vigilant. There are many different phone scams that contributed to these enormous numbers. Among the top three in Canada are Chinese language phone scams. (The top two are Amazon scams and credit card scams.)

What are Chinese Language Phone Scams?

Chinese language phone scams refer to robocalls in Chinese that scare the recipient into thinking that there is some kind of urgent problem, which they need to speak to a representative about in order to solve. The scams can take on many forms, with robocallers often impersonating the Chinese Embassy or Consulate, the Beijing Police, or delivery agencies.

The Canadian Anti-Fraud Centre warn that these scammers specifically target Asian communities in Canada, especially people who speak Chinese. The robocalls are meant to be intimidating and threatening so that victims will engage and be at risk of losing money or providing personal information, which would likely result in financial losses down the road.

Examples of Chinese Language Phone Scams

The following are verbatim examples, albeit translated into English:

• "Chinese Embassy voice notification: You have an important notice that you have not received. Please press 9 for inquiries.

• "Customs stopped a suspicious package containing many bank cards and you are the subject of an investigation."

• "There are fraudulent funds in your account and we need your banking information to verify."

• "You must visit this police website to verify your identity and provide a copy of your passport."

How Much Money are People Losing?

The short answer? Millions. According to a CBC report last August, twelve Chinese post-secondary students in Waterloo were scammed out of $1.76 million by scammers impersonating law enforcement officers or courier companies.^[3]

Although Chinese Canadians are specifically targeted, the Chinese language scam has impacted many others as well. In 2018, the US Federal Trade Commission warned citizens to beware of scammers impersonating the Chinese Consulate, and that same year, the Massachusetts Office of Consumer Affairs warned via blog post that the Chinese Embassy scam was on the rise in Massachusetts.

Tips to Protect Yourself Against Chinese Language Scams

1. If you receive a call or text from an unknown number, use Whois by SIPSTACK to see the number's risk rating score. This will allow you to determine whether or not it is safe before you decide to respond.
2. If you find out the number does belong to a scammer, rate and review it in the Whois portal, so members of your community can protect themselves as well.
3. Create an account and verify your number with Whois. This will put you on the "Do Not Call List" from verified spam numbers and other unwanted telemarketers.
4. Generally ignore calls from unknown numbers that contain Chinese recordings, especially if you understand the language and are being threatened or intimidated into taking action.

How SIPSTACK Fights Fraud

Using the latest technology and machine learning, SIPSTACK's systems authenticate all activity in real time against variables that affect your security. When a carrier implements SIPSTACK's Smart CNAM, they are able to customize a threshold for calls to pass through, based on their specific needs. Additionally, Whois by Sipstack is the biggest and best AI-powered reverse lookup database that individuals can use to help eradicate spam. At SIPSTACK, we take an active role in ensuring we are building a secure and connected tomorrow. Contact us today to learn how you can protect yourself from spam.

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