A jewelry store in Kunming, Yunnan recently reported to police that a customer had purchased over 300 grams of gold in a single transaction, raising suspicions of potential telecom network fraud involvement.
The gold was concealed inside milk tea thermal bags and intercepted just before being handed over. Police immediately contacted the purchaser, Mr. Zheng, by phone upon receiving the report.
Officer Lu Xianzhi from the Criminal Investigation Brigade of Kunming's Guandu Public Security Bureau noted that Mr. Zheng's claim of buying for collection purposes seemed highly suspicious, as purchasing gold at peak prices for investment returns defied normal logic.
Strongly suspecting telecom fraud, officers rushed to Mr. Zheng's residence for in-person intervention.
Officer Ma Xinghao reported finding Mr. Zheng preparing to leave home with the gold divided into multiple milk tea thermal bags, totaling 312 grams, when they arrived.
With Mr. Zheng's consent, police discovered a fraudulent investment app on his phone, confirming the scam. Remarkably, Mr. Zheng remained convinced he needed to proceed with the transaction.
Officer Ma explained that Mr. Zheng believed he was simply investing through a stock trading app, purchasing gold as offline collateral to convert into stock trading funds.
Through persistent persuasion using similar case examples and bringing him to the police station, officers finally convinced Mr. Zheng, safeguarding over 300,000 yuan worth of gold.
The case raises questions about how Mr. Zheng became so convinced about "trading gold for stocks." One month prior, he received a call from a self-proclaimed investment advisor inviting him to free online financial courses.
Being an experienced stock trader, Mr. Zheng initially remained skeptical given his extensive exposure to similar schemes.
The turning point came when the course providers offered completely free services without pushing paid products—unlike typical sales tactics involving discounts on courses or software.
Enticed by free lectures and daily check-in red packets that grew from 28 yuan to over 1,000 yuan total, Mr. Zheng continued attending. After several sessions, the "teacher" revealed insider information about a supposed asset restructuring opportunity.
The instructor claimed institutional investors could guide participants in guaranteed profitable trades through "inquiry-based transactions" using the app, with losses covered by the organization.
After testing with 10,000 yuan and successfully withdrawing small profits, Mr. Zheng qualified for larger "inquiry-based transactions." However, he was told bank transfers faced regulatory scrutiny, requiring cash or equivalent gold delivered offline.
The investigation revealed that among thousands showing in live-streamed classes, only Mr. Zheng was real—others were actors creating false activity.
Officer Ma explained how the scammers meticulously built credibility through fake interactions and fabricated success stories, including photos of gold investments shared in group chats.
Officer Lu warned that fraudulent apps can be created for mere hundreds of yuan with different icons/names but identical content. He emphasized downloading apps only from official stores, avoiding links from texts or unknown websites.
Police reminded investors that any low-risk, high-return schemes requiring offline gold or cash transactions are invariably fraudulent, with scammers always specifying handoff locations rather than genuine investment operations.
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