# Digital Scams

China’s War on Financial Illusion: Beijing Tightens the Noose on Grassroots Ponzi Schemes

Chinese authorities have launched a nationwide crackdown on sophisticated pyramid schemes and 'capital pool' scams using a new 'all-around encirclement' strategy. By leveraging updated public security laws and targeting participants at all levels, the state aims to suppress financial fraud that increasingly hides behind digital buzzwords like e-commerce and virtual currency.