Black Market for Extortion via Illegal Proxy Rights Protection in Securities Investment Advisory: Malicious Complaints Using Forged Evidence

Who Gets Targeted

The victims are primarily investors involved in service disputes with securities investment advisory firms, or individual investors desperate to recover losses. Their psychological vulnerability stems from an inability to accept financial losses or high service fees, combined with a lack of understanding of legal and compliant financial procedures. Black-market intermediaries exploit this anxiety by promising 'no recovery, no fee' to lower defenses, inducing victims to authorize access to personal information, and even coaching them to provide fabricated or exaggerated evidence of service misconduct. Ultimately, victims face risks of personal data leaks and secondary financial loss, and may even face legal consequences for participating in malicious complaints.

骗局怎么运作

• Targeted Traffic and Precise Screening: Black-market gangs flood short-video platforms and social networks with content tagged with 'insider tips,' 'rights protection secrets,' and 'professional investment recovery.' They use algorithmic recommendations to reach users who have recently searched for financial products or reported investment losses, using pitches like 'If your advisory fees are too high or losses are severe, we can help you get a full legal refund with no fee if unsuccessful.'
• Inducing False Power of Attorney: Intermediaries lure victims into offline or online communication, requiring them to sign predatory service agreements. These agreements demand high commission rates—often 30% to 50% of the recovered amount—and force victims to surrender sensitive items like original ID cards, bank card passwords, and digital security tokens under the guise of 'full authorization.'
• Fabricating Evidence and Coaching Complaints: Once authorized, intermediaries use professional templates and assembly-line workflows to forge evidence of misconduct, such as promised returns, exaggerated marketing, or illegal stock recommendations. They even coach consumers to maintain a unified narrative to withstand regulatory and police scrutiny, then pressure financial institutions through mass complaints and reporting letters.
• Extortion via Regulatory Pressure: Exploiting the strict complaint-handling mechanisms and regulatory pressure faced by financial institutions, these gangs orchestrate persistent, disruptive visits and mass identical complaints. When institutions offer settlements to resolve the issue or comply with regulations, the intermediaries seize the opportunity to negotiate, using the withdrawal of complaints as leverage to demand exorbitant settlement fees or extortion money.
• Commission Extortion and Secondary Victimization: Once extortion is successful or a refund is forced, the intermediaries deduct their high commissions directly from the recovered funds according to their predatory agreements. Some intermediaries even reach settlements without the client's consent, pocketing the entire refund, and subsequently sell the client's personal information to other fraud rings, victimizing them a second time.

红旗信号（看到这些快跑）

• 🚩 Promises of 'no recovery, no fee' combined with claims of 'insider connections' to guarantee a full refund. Legitimate legal professionals rarely guarantee case outcomes.
• 🚩 Demands to sign 'full power of attorney' agreements and requirements to surrender original ID cards, bank passwords, digital security tokens, or SIM cards.
• 🚩 Coaching consumers to engage in illegal acts such as fabricating chat logs, forging evidence of service promises, or providing scripted responses during regulatory or police inquiries.
• 🚩 Organizing persistent, disruptive visits or besieging financial institutions when complaints do not yield expected results, and mass-publishing malicious smear articles or videos online to exert pressure.
• 🚩 Unilaterally withholding recovered funds under various pretexts, demanding commissions exceeding the agreed-upon rates, or cutting off contact entirely, which constitutes suspected misappropriation of property.

真实案例

• In July 2026, Shanghai Putuo police successfully cracked a case of illegal proxy rights protection extortion in the financial sector, dismantling a gang that led this black-market operation. The group used short-video platforms to solicit victims, induced them to sign agreements, and obtained sensitive personal information to forge evidence for extortion. Several key suspects were criminally detained. (Source: https://news.qq.com/rain/a/20260807A0G4LF00)
• In August 2026, Wuhan police mobilized over 100 officers in a coordinated crackdown, dismantling multiple local black-market proxy rights protection gangs and criminally detaining 37 suspects. These groups coached clients on malicious complaints to extort settlement fees from financial institutions while charging clients high commissions.
• Since 2022, multiple fraud cases involving 'full insurance premium refunds' and 'investment loss recovery' have emerged in Guangxi. One victim, after seeing an ad on a social platform, entrusted an intermediary to recover tens of thousands in securities fees, only to be forced to hand over their ID and bank card. After pressuring the institution for a refund, the intermediary withheld 40% as a 'service fee' and used the victim's information to take out multiple online loans, causing the victim double financial loss.

Official Stance

• In February 2026, the National Financial Regulatory Administration, the Cyberspace Administration of China, the Ministry of Public Security, the People's Bank of China, and the China Securities Regulatory Commission jointly issued a risk warning regarding illegal proxy rights protection videos and live-streaming traps, highlighting the risks of criminals coaching victims to fabricate evidence for illicit gain.
• In 2026, the Guangxi Financial Regulatory Bureau, the PBOC Guangxi Branch, the Guangxi Securities Regulatory Bureau, and the Guangxi Communications Administration jointly issued a warning against illegal proxy rights protection and loan intermediary marketing traps, explicitly naming these black-market activities as suspected extortion and violations of personal information privacy.
• On July 31, 2026, Shanghai police reported on the crackdown of financial sector extortion cases, warning consumers not to trust short-video ads promising 'full refunds,' noting that participating in forging evidence for malicious complaints may lead to joint legal liability.

How to Protect Yourself

• ✅ If you have a dispute with a financial institution, resolve it through official channels such as the institution's customer service hotline, physical branches, or official regulatory hotlines. Do not trust third-party intermediaries on social media promising proxy services for high fees.
• ✅ Protect sensitive personal information strictly. Never hand over original ID cards, bank passwords, or security tokens to others. Read all authorization agreements carefully and refuse to sign 'full power of attorney' documents.
• ✅ Resist any coaching to forge evidence. If an intermediary suggests fabricating chat logs, forging service promises, or using scripted responses for regulatory inquiries, terminate the relationship immediately and preserve all communication records as evidence.
• ✅ Financial institutions facing malicious complaints should establish anti-black-market mechanisms, maintain compliant records (such as call recordings and authentic chat logs) to explain the situation to regulators, and report extortion attempts to the police promptly.