The Chinese Ministry of Industry and Information Technology (MIIT) has issued a cautionary alert regarding the emergence of fraudulent schemes exploiting counterfeit digital yuan applications.

In a recent social media announcement, MIIT highlighted the proliferation of fake apps masquerading as the official digital yuan platform. These deceptive applications lure users with enticing “promotions,” attempting to mimic the authentic platform’s appearance and functionalities.

One such counterfeit app, named “Digital Yuan Test Version,” closely resembles the official application in logo and user interface design. However, users can discern the forged version by examining its package name, version details, or the MD5 message-digest algorithm.

For instance, while the genuine app’s package name is “cn.gov.pbc.dcep,” the counterfeit “Test Version” adopts a different package name, presenting as “com.ecny.ecny2,” omitting the governmental identifiers.

The fraudulent apps employ tactics akin to pyramid schemes, promising users “dividends” for sharing the software and falsely leveraging e-CNY promotions and simulated “national welfare” distributions to entice participation.

Upon downloading the fake apps, users are prompted to provide extensive personal information under the guise of “eligibility verification,” creating a false impression of regulatory compliance. Additionally, users may experience prolonged waiting periods as scammers extend the process to ensnare victims further.

Despite assurances of receiving funds in digital yuan, users often find empty wallets or encounter difficulties withdrawing purported “funds” sent by scammers. Subsequently, users are directed to alternative messaging apps and coerced into paying additional fees under the pretext of resolving technical issues, perpetuating the scam.

The proliferation of such fraudulent activities underscores the challenges posed by the rising popularity of China’s central bank digital currency (CBDC). In January, the Yangpu District People’s Court of Shanghai adjudicated the first instance of money laundering involving digital yuan and cryptocurrency.

Amidst these challenges, China aims to expand the deployment of genuine e-CNY applications in real-world scenarios, emphasizing the importance of vigilant behavior and caution among users to mitigate the risks associated with digital yuan-related crimes.