China Cracks Down on ‘Old Item Recycling’ Live-Stream Scams

Chinese authorities are warning the public about a new type of “old item recycling” scam in which fraudsters use live-streaming platforms to deceive middle-aged and elderly consumers with promises of high-priced purchases for vintage items. Police in Shandong Province have dismantled a criminal gang that defrauded more than 270 victims nationwide of over 2 million yuan (approximately $280,000), according to Xinhua News.

How the Scam Worked

The gang, led by two individuals identified only by their surnames Liu and Wang, operated for nearly a year from a rental property on the outskirts of Gaoqing County in Zibo City. Both leaders previously worked in live-streaming e-commerce before turning their broadcasts into what police describe as a series of “fraud dramas.”

Zhang Tianpeng, captain of the Gaoqing County Public Security Bureau’s Combined Operations Brigade, explained that the gang wrote scripts, hired actors, and arranged props to create convincing performances. They would first attract victims on mainstream platforms like Douyin and Kuaishou, then migrate them to lesser-known communication apps to avoid platform monitoring and conduct their “brainwashing” in private live-streams.

To project an image of wealth, the gang filled their studio with bundles of fake cash and counterfeit gold and silver bars. Police officer Yang Yuxi noted that the “gold bowls” were actually cheap ceramics, and the cash stacks contained real bills only at the top and bottom. The props were displayed prominently in the live-stream background to showcase the gang’s supposed financial strength.

Emotional Manipulation and Patriotic Appeals

The gang maintained an extensive “script library” and employed actors to perform emotional scenes. One script involved a woman pretending to be an abandoned wife with diabetes caring for a sick mother-in-law, begging the streamer to recycle her family heirloom to pay for medical treatment. According to suspect confessions, these paid “shills” earned 200 yuan per day.

In other broadcasts, the gang would hire extras to pose as foreign buyers interested in purchasing Chinese antiques. The streamer would then stir patriotic sentiment, telling viewers, “We can’t sell our ancestors’ items to foreigners - we find Chinese buyers for you,” pressuring audiences to place orders.

Gang leader Liu created artificial urgency in his broadcasts, claiming: “I have hundreds of expedited orders in my hands right now. There are hundreds of people ahead of you in the expedited queue… I’ve been adding work teams every day these days, and the speed is very fast!”

Victims Reluctant to Report

The first known victim, a woman surnamed Huang from Gaoqing County, was attracted to a live stream in March 2026 that promised door-to-door high-price recycling. After paying over 10,000 yuan in deposits and fees over half a month with no one ever showing up, she realized she had been scammed and reported the crime.

Police found that many victims did not come forward because the gang sent them cheap jade with fake appraisal certificates to placate them. As Zhang Tianpeng explained, elderly victims who received these items often felt the value roughly matched their losses, or even that they had gotten a good deal - leading many to forgo reporting.

A CCTV News investigation revealed that the gang also used fake mini-programs to display a fraudulent 36 million yuan transfer during live streams, further deceiving viewers into believing the recycling business was legitimate.

Police Warnings and Prevention

Authorities have issued several warnings for consumers, particularly older adults:

• Be wary of recycling services that require advance deposits, guarantees, or door-to-door fees. Legitimate services typically inspect items on-site, transact face-to-face, and settle payments upon delivery.
• Do not trust “wealthy personas” or dramatic storylines in live streams. Gold bars and large transfer screenshots may be props or synthetic images.
• Be cautious of lesser-known communication apps. If strangers ask you to download unknown chat apps or click suspicious links, stop immediately.
• Family members should help elderly relatives install the National Anti-Fraud Center app and enable alerts.

Experts interviewed by CNR also called on live-streaming platforms to strengthen qualification review and content verification for “recycling” and “antique appraisal” accounts, intercept abnormal payment links, and crack down on fraud using private messaging to divert users.

The 11 suspects have been placed under criminal coercive measures, and the case remains under further investigation. As authorities continue to combat evolving online fraud tactics, the case serves as a stark reminder that even seemingly simple offers can conceal sophisticated criminal schemes targeting society’s most vulnerable members.