Shanghai, China Court Analyzes Criminal Liability for “Luring” in Virtual-Currency-Related Telecom Fraud Cases: May Constitute Accomplice Liability for Fraud or the Crime of Illegally Using Information Networks
On August 18, the Shanghai Municipal Intermediate People’s Court released a set of typical cases, analyzing how to determine whether “luring persons” in telecom and internet fraud cases involving virtual currencies constitute accomplices to fraud. From February 2022 to April 2023, for the purpose of obtaining benefits, the defendants helped upstream fraud criminal groups “lure” victims through online virtual phone software, causing victims to join related scam groups. Ultimately, 30 victims were defrauded by overseas fraud organizations of more than RMB 2.34 million in total (with the currency being the same hereafter). The overseas fraud organizations transferred the funds into the suspects’ transaction accounts via virtual currency. In this case, three defendants were sentenced for fraud, receiving prison terms ranging from ten to thirteen years. The Shanghai First Intermediate People’s Court stated that in telecom and internet fraud cases, “luring persons” may, depending on the specific circumstances, constitute accomplices to fraud or the crime of illegally using an information network. The key is to determine whether there is a clear intent-to-crime connection with the upstream fraud criminal group, and whether there is stable cooperation and division of labor. In judicial practice, when assessing the criminal liability of “luring persons,” courts should take a comprehensive view of factors including their role in the criminal chain, the extent of organization and management, their connections with members of the upstream crimes, the ways in which they profit, and their abnormal behavior. Such conduct should be distinguished from behavior that merely provides general online services and does not form a common criminal purpose, as well as from “luring” acts that are known to and involve participation in the implementation of the fraud.
On August 18, the Shanghai Municipal Intermediate People’s Court released a set of typical cases, analyzing how to determine whether “luring persons” in telecom and internet fraud cases involving virtual currencies constitute accomplices to fraud. From February 2022 to April 2023, for the purpose of obtaining benefits, the defendants helped upstream fraud criminal groups “lure” victims through online virtual phone software, causing victims to join related scam groups. Ultimately, 30 victims were defrauded by overseas fraud organizations of more than RMB 2.34 million in total (with the currency being the same hereafter). The overseas fraud organizations transferred the funds into the suspects’ transaction accounts via virtual currency. In this case, three defendants were sentenced for fraud, receiving prison terms ranging from ten to thirteen years. The Shanghai First Intermediate People’s Court stated that in telecom and internet fraud cases, “luring persons” may, depending on the specific circumstances, constitute accomplices to fraud or the crime of illegally using an information network. The key is to determine whether there is a clear intent-to-crime connection with the upstream fraud criminal group, and whether there is stable cooperation and division of labor. In judicial practice, when assessing the criminal liability of “luring persons,” courts should take a comprehensive view of factors including their role in the criminal chain, the extent of organization and management, their connections with members of the upstream crimes, the ways in which they profit, and their abnormal behavior. Such conduct should be distinguished from behavior that merely provides general online services and does not form a common criminal purpose, as well as from “luring” acts that are known to and involve participation in the implementation of the fraud.