Digital Transformation AI Agency Pyramid Scheme: Fraudulent SaaS Licensing for Franchise Fees

Who Gets Targeted

The victims are primarily traditional SME owners, individual business operators, and entrepreneurs in lower-tier markets who urgently need to complete digital transformation but lack the technical expertise to discern legitimacy. Their psychological vulnerability stems from the fear of being left behind by the times, leading them to trust the authority of buzzwords like AI, SaaS, and digital platforms. Furthermore, the promise of becoming an exclusive regional agent and earning profit-sharing hits their speculative desire for low-cost, high-return, overnight success. They often realize the system is completely unusable only after rushing to sign contracts and paying high authorization fees.

骗局怎么运作

• Criminal groups register companies that appear high-tech, claiming to launch a one-stop AI digital transformation SaaS platform. Through social media groups and offline seminars, recruiters use narratives about national policy dividends and 'blue ocean' markets to sell so-called AI platform agency certificates to tech-illiterate SME owners, forging partnerships with major tech firms to make victims believe they have acquired rare, official digital asset agency rights.
• They set up highly tempting agency tiers, requiring victims to purchase a 'SaaS system permanent license' or 'digital store transformation package'—allegedly worth tens of thousands—to qualify as an agent. The fee structure involves inflating the price of low-cost, worthless template systems to hundreds of thousands for 'exclusive city-level operating rights,' defrauding businesses of high software procurement and franchise fees.
• After purchasing the fake license, victimized companies are told that not only must they use the system, but they can also earn high commissions by recruiting sub-agents. The group deliberately binds the SaaS software license to a multi-level marketing (MLM) model, requiring that for every new business recruited to purchase the system, the upline receives a headhunting fee and a cut of the system fee. This shifts the core of the scam from the software's utility to a pure pyramid scheme based on recruiting.
• To keep victimized business owners convinced of the fake SaaS system, the scammers build rudimentary 'shell' backends or mini-programs, embedding basic open-source code to pretend the system is being iterated. When victims question the system's usability, customer service uses excuses like 'internal testing phase' or 'interface permissions not yet fully open' to stall, while inducing victims to focus on recruiting sub-agents rather than the system itself.
• When victims realize they have been scammed and demand refunds, the group refuses by citing signed authorization contracts and the delivery of system services. Alternatively, they arrange for offline 'mentors' to pacify victims with rhetoric, promising to connect them with major client resources to restore their hope. Eventually, after absorbing large amounts of capital, the core members transfer the assets and dissolve the company, leaving the platform paralyzed and untraceable.

红旗信号（看到这些快跑）

• 🚩 Recruitment emphasizes 'exclusive agency rights' or 'city-level operator slots,' requiring victims to pay tens to hundreds of thousands upfront for permanent SaaS licenses or packages, rather than monthly or usage-based fees.
• 🚩 The core profit model relies on recruiting sub-agents for high commissions, constantly guiding clients to make money by bringing in new people rather than relying on the system to help the business achieve profitable digital operations.
• 🚩 Lack of substantial functional demonstrations for the SaaS system; the system often shows traces of free open-source templates, features are extremely minimal or frequently error-prone, yet it is marketed as a high-tech AI architecture developed over many years.
• 🚩 Seminars frequently play forged videos of leadership inspections or fake official documents regarding partnerships with major tech firms. The signing process is highly inflammatory, pressuring victims to swipe cards on the spot to lock in regional slots, refusing to allow a 'cooling-off' period.
• 🚩 Payment accounts change frequently or require transfers to specific personal accounts. Invoices are often issued for 'consulting services' rather than legitimate software product licensing fees, and subsequent customer service is dismissive or becomes completely unreachable.

真实案例

• According to public reports from CNR's Rule of Law Online, in 2026, authorities investigated a pyramid scheme disguised as a digital transformation initiative. The group, under the banner of 'AI empowering the real economy,' required merchants to purchase digital store SaaS systems to gain agency status. Through a pyramid-style rebate system, they expanded aggressively, defrauding members of over 1 billion RMB. More than 40 core suspects, including a person surnamed Tang, were arrested. (Source: https://www.haojiaofullpro.com/2026/06/10/142601/)
• A 2026 intellectual property infringement case revealed that a group registered 19 affiliated companies to engage in the production, storage, and sale of counterfeit iFLYTEK products. These companies used forged credentials from major tech firms to sell fake systems or licenses to clients. The case involved massive sums and resulted in a court-ordered compensation of over 8.3 million RMB, exposing the prevalence of fake manufacturer authorizations.
• According to official reports, the Cyberspace Administration of China investigated sites suspected of illegally operating AI large model API interfaces. Unqualified illegal transit stations not only resold model interfaces but also forged authorization agreements to trick downstream enterprises into purchasing long-term SaaS packages. This left some companies facing not only service failures but also potential legal risks for using illegal APIs, leading to collateral losses.
• On April 27, 2026, the Changsha Intermediate People's Court publicly sentenced a group of 16 people, including a person surnamed Liu, for fundraising fraud and illegal absorption of public deposits. The mastermind, Liu, was sentenced to life imprisonment. The case involved over 31.4 billion RMB in funds and caused losses of 6.1 billion RMB, marking one of the largest illegal fundraising criminal cases in China in recent years. (Source: https://www.jingyinlaw.com/news-info.php?classID=4&id=3773)

Official Stance

• On June 8, 2026, CNR's Rule of Law Online published a special warning, explicitly advising vigilance against pyramid schemes disguised as digital transformation initiatives, noting that their model of selling agency rights through digital platforms or systems is a resurgence of pyramid scheme tactics.
• In June 2026, authoritative media exposed a pyramid scheme case worth over 1 billion RMB. Law enforcement agencies took strict action against the malicious practice of using AI and digitalization as a pretext to defraud victims of high membership and system authorization fees, arresting over 40 suspects including Tang. Business owners were warned not to trust high-tech 'get-rich-quick' myths.
• The Cyberspace Administration of China reported the investigation of several illegal websites suspected of operating AI large model API interfaces. They reminded enterprises to verify the legal qualifications, filing information, and authentic software copyrights of vendors when purchasing SaaS services and model authorizations to prevent falling into fake authorization traps.

How to Protect Yourself

• ✅ Before purchasing SaaS or AI system services, firmly demand a trial and involve internal technical staff in testing. Thoroughly verify whether the system functions are real and effective, or if it is merely a shell for free open-source code. Do not be swayed by verbal promises of agency profit-sharing.
• ✅ Use the National Copyright Administration or business information inquiry platforms to directly verify if the target software possesses authentic software copyrights and legal trademark rights, and strictly check if the licensor is a software enterprise registered in the official filing system.
• ✅ Once you discover that contract terms focus on recruiting sub-agents for commissions rather than ensuring software maintenance and after-sales service, terminate the cooperation immediately, refuse to pay any remaining balance, and stop losses to avoid being trapped in a pyramid scheme.
• ✅ For financial transactions, insist on corporate bank transfers and demand formal invoices for software product licensing. If the counterparty requests payment to a personal account or issues abnormal invoices under the guise of 'business management consulting fees,' do not pay and report the matter immediately to the market supervision and administration department.