China Busts Real Estate Data Black Market: 1.3M Records Sold

Chinese police in Chengdu, Sichuan Province, have dismantled a sprawling real estate information black market, arresting 56 suspects involved in the trafficking of over 1.3 million homeowner records. The operation, executed on April 8, 2026, by the Chengdu Cybersecurity Department, uncovered a structured criminal chain spanning data theft, intermediary resale, and downstream commercial exploitation, with total funds involved reaching 1.6 million RMB (approximately $220,000 USD).

The Discovery and Investigation

In March 2026, cybersecurity police in Chengdu discovered individuals selling homeowner information online, offering access to names, phone numbers, and detailed property records from residential communities across the city. The scale of the operation prompted an immediate trace-back investigation, which revealed a highly organized criminal enterprise.

According to The Paper, the black market gang operated with “clear hierarchy and division of labor, forming a full-chain illegal model of source theft, intermediary resale, and downstream use.”

The Three-Tier Criminal Chain

The investigation revealed a structured operation with three distinct layers:

Source — Insider Theft: Two real estate industry insiders, identified as He Muchao and Ye, exploited their professional positions to illegally extract massive volumes of property and personal data from company databases. These “内鬼” (insiders) were the primary source of the stolen information.

Intermediaries — Resale Network: A middleman identified as Yu, along with other traders, received the leaked data and resold it through multiple layers at marked-up prices, expanding the reach and profitability of the operation.

Downstream Users — Commercial Exploitation: Large numbers of real estate agents and home renovation industry professionals purchased the information for targeted commercial marketing campaigns, completing the chain from theft to profit.

Legal Consequences

On April 8, 2026, police conducted a coordinated operation, arresting all 56 suspects in a single sweep. The authorities applied a tiered enforcement approach:

• 11 key suspects — including the insider data thieves and the intermediary traders — face criminal charges under Article 253-1 of the PRC Criminal Law (the Crime of Infringing on Citizens’ Personal Information). Under this statute, serious cases carry penalties of up to three years imprisonment, while especially serious cases can result in three to seven years.
• 45 downstream users — real estate agents and home renovation workers who purchased the data — received administrative penalties under the Cybersecurity Law and the Personal Information Protection Law.

A Broader Pattern of Data Leaks

This case is not an isolated incident. China’s real estate sector has become a persistent hotspot for personal information trafficking. In September 2025, Shanghai Fengxian police dismantled a similar ring where a customer service agent sold over 10,000 homeowner records, with funds involved exceeding 3 million RMB. That case, part of the “Clean Network 2025” campaign, ultimately led to 31 arrests.

In July 2025, a real estate salesperson in Sichuan’s Qu County illegally sold 35,000 homeowner records to home decoration and appliance companies for targeted marketing. Nationwide, the Ministry of Public Security’s “Clean Network” campaign solved over 7,000 related cases in 2024 alone, dismantling multiple personal information trading platforms.

Why Real Estate Data Is So Valuable

Homeowner information is among the most lucrative categories of personal data in China because it enables highly targeted marketing for home renovation, furniture, appliance, and other housing-related industries. A single record containing a homeowner’s name, phone number, property address, and property value can be sold multiple times through intermediary layers, with each transaction adding to the profit margin.

As Banyuetan (半月谈) reported in a broader investigation into China’s data black market, personal information leaks occur through multiple channels — food delivery orders, express packages, resume submissions, and even street QR code promotions. The magazine noted that experts from USTC and Zhejiang University have warned that “doxxing” has become a serious issue, with some minors participating in the trade.

Enforcement and Outlook

The Chengdu case demonstrates China’s continued enforcement of its personal information protection framework, which includes the Personal Information Protection Law (effective since November 2021), the Cybersecurity Law, and the Criminal Law. The tiered approach — criminal prosecution for core perpetrators and administrative penalties for downstream buyers — signals an enforcement strategy targeting the entire chain rather than just the top-level operators.

However, the recurring nature of these cases raises questions about whether broader industry-wide reforms are needed. The vulnerability of centralized real estate databases to insider threats remains a critical weakness, and the lucrative nature of the data black market continues to incentivize new actors. As authorities push forward with enforcement, the spotlight now turns to the real estate companies themselves and whether they will be held accountable for the security of the data they hold.