Prosecution Of Fraud Involving Wechat Pay And Alipay
Introduction: Fraud via WeChat Pay and Alipay
WeChat Pay and Alipay are China’s leading mobile payment platforms, integrated into apps used by millions. Fraud via these platforms generally involves:
Unauthorized transactions: Hacking, phishing, or stealing account credentials.
Scams: Fake merchants, investment scams, or social engineering.
Money laundering: Using payments to obscure illegal fund flows.
Fraud involving these platforms is criminally prosecutable under Chinese law, including:
Criminal Law of the People’s Republic of China (PRC) – Articles 192 (fraud) and 196 (embezzlement).
Regulations on Payment Institutions – Protect user funds and impose penalties for unauthorized activity.
Cybersecurity Law – Criminalizes hacking or fraud via online systems.
Penalties can include imprisonment, fines, and confiscation of illegally obtained funds.
Key Legal Principles
Fraud Definition (Article 192, PRC Criminal Law): Deceiving someone to obtain property illegally.
Liability of the Perpetrator: Direct actors or accomplices using the platform.
Platform Responsibility: While platforms often assist investigations, direct criminal liability usually rests with the fraudster unless the platform was complicit or negligent.
Evidence: Digital trails, transaction records, chat logs, and account activity are crucial.
Case Law Examples
1. WeChat Pay Scam – Shandong Province (2019)
Facts: A fraudster set up a fake online store and persuaded victims to pay via WeChat Pay for non-existent goods.
Investigation: Authorities traced the transactions using WeChat Pay records.
Outcome: The defendant was convicted under Article 192 of the PRC Criminal Law for fraud and sentenced to five years imprisonment with confiscation of illegally gained funds.
Significance: Shows that using digital payment platforms for e-commerce scams is treated the same as traditional fraud.
2. Alipay Phishing Scam – Zhejiang Province (2020)
Facts: Fraudsters sent phishing messages claiming to be Alipay customer service, tricking users into giving account passwords.
Issue: Unauthorized access and fund transfer.
Held: Court convicted perpetrators for fraud and illegal access to computer information systems under Articles 192 and 285 of PRC Criminal Law. Sentences ranged from 3–6 years imprisonment.
Significance: Demonstrates that fraud via social engineering targeting payment apps carries criminal liability.
3. Investment Scam via WeChat Pay – Beijing (2018)
Facts: Perpetrators created a fake cryptocurrency investment scheme, collecting money via WeChat Pay. Victims lost millions of RMB.
Investigation: Cybercrime division analyzed WeChat Pay transfers and cross-referenced with bank accounts.
Held: Courts applied fraud (Art. 192) and illegal fundraising (Art. 176) provisions. Perpetrators received sentences of 7–10 years imprisonment.
Significance: Payment apps are commonly exploited for investment fraud; authorities hold operators accountable if complicit.
4. Alipay Red Envelope Scam – Guangdong (2017)
Facts: A scam involved sending fake “red envelopes” on Alipay promising rewards. Victims were tricked into entering personal data and making small payments.
Held: Courts convicted the scammer for fraud and stealing property via electronic means. Fines and imprisonment of 3–4 years were imposed.
Significance: Highlights how even small-value mobile payment frauds are prosecuted criminally.
5. WeChat Pay Money Laundering Case – Chongqing (2021)
Facts: Criminal syndicate used WeChat Pay to move illegally obtained funds from online scams through multiple accounts to hide origin.
Issue: Money laundering via mobile payments.
Held: Defendants were convicted under Articles 191 (money laundering) and 192 (fraud). Sentences ranged from 5–12 years imprisonment.
Significance: Illustrates that mobile payments can be part of organized crime networks and that authorities track digital transaction flows rigorously.
6. Alipay Fake Charity Fraud – Shanghai (2019)
Facts: A fake charity page on Alipay collected donations supposedly for disaster relief. Funds were diverted for personal use.
Investigation: Alipay records and IP tracking were used as evidence.
Held: Perpetrators convicted of fraud under Article 192; sentences of 6–8 years imprisonment.
Significance: Fraudsters exploiting social trust on payment platforms are heavily penalized.
Key Takeaways from Case Law
Digital evidence is critical – transaction history, IP logs, and chat records are primary proof.
Criminal law applies regardless of platform – WeChat Pay, Alipay, or any payment app can be used in prosecution.
Fraud types vary – scams, phishing, fake stores, fake charities, investment frauds, money laundering.
Sentences are severe – typical prison terms range from 3–10 years depending on the amount and scope of fraud.
Platform cooperation is key – Authorities rely on payment institutions to freeze accounts and trace funds.
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