The Ministry of Public Security on Wednesday announced that members of two fraud gangs were arrested for swindling more than a million yuan out of more than 40 foreign enterprises via Internet.

An official with the Ministry of Public Security said police started their investigation, after being informed by the Ministry of Commerce and some Chinese embassies overseas that some foreign companies were being cheated by domestic companies.

In April, police in east China's Anhui Province started to investigate the local Ruimao Export & Import Trade Ltd, Co.

In July, police arrested a 15-member fraud gang, after discovering they had registered companies with bogus documents then searched the Internet and sent emails to companies promising to sign orders with them, inviting them to visit China for detailed negotiations and then demanding commissions and tour fees. After the money was sent money, the Chinese company changed its name and phone numbers and simply disappeared.

Police say the gang, headed by Liu Xiangyang, received more than one million yuan in 25 remittances from companies in the Untied States, Italy, Belgium and the United Arab Emirates.

In June, police in central China's Hubei Province arrested a five-member fraud gang. The gang played similar tricks on foreign companies from eight companies which were swindled out of 300,000 yuan.

Source: Xinhua