Use promotions honestly; do not manufacture new users or false transactions to collect rewards

Nothing. Leave mass “coupon farming” task groups and do not exploit a platform error. Resist treating a one-time promotion as income you can endlessly duplicate through false identities.

Ordinary fraud carries up to three years and a fine or a fine alone for a relatively large amount, three to ten years and a fine for a huge amount or serious circumstances, and at least ten years or life plus a fine or confiscation for an especially huge amount or especially serious circumstances. Provincial thresholds fall within RMB 3,000–10,000 for the first tier and RMB 30,000–100,000 for the second; the especially huge threshold is RMB 500,000. Teaching criminal methods can separately carry up to five years, five to ten for serious circumstances, or at least ten years or life for especially serious circumstances. Unlawful personal-information trading, including qualifying trade in phone numbers and verification data, can carry up to three years or three to seven for especially serious circumstances. Article 14 of the Anti-Telecom and Online Fraud Law prohibits specified illegally produced, traded, supplied, or used mass-account, network-address-switching, and bulk SMS-verification tools; Article 31 addresses unlawful SIM and account transactions and assistance with fraudulent real-name verification. Article 14 violations can bring confiscation of gains and a fine of one to ten times those gains, or up to RMB 500,000 when gains are absent or below RMB 50,000, with up to 15 days’ detention for serious cases. Article 31 violations use one-to-ten-times fines, or up to RMB 200,000 when gains are absent or below RMB 20,000, and up to 15 days for serious circumstances. Participation in telecom fraud below the criminal threshold can bring ten to 15 days’ detention, confiscation, and a one-to-ten-times fine, or up to RMB 100,000 when gains are absent or below RMB 10,000. In the first official case, Liu bought virtual numbers at RMB 0.1 each, registered false new users, claimed RMB 15 off a RMB 29 order, resold goods to small shops, and used reciprocal invitations to claim RMB 2–20 rewards. Liu and Tan obtained over RMB 90,000 and RMB 70,000 respectively. Twelve defendants prosecuted in Shanghai’s Yangpu District received sentences ranging from three years and six months to three months’ criminal detention. In a second case, Wang exploited the delay between refunds and removal of virtual raffle currency, processing 1,156 refunds and withdrawing 224 collectible figures worth over RMB 249,000 for resale. The court imposed three years suspended for four years and a RMB 30,000 fine; restitution and advance payment of fines during proceedings totaled RMB 330,000. In a third case, fabricated rides in which participants acted as both passenger and driver obtained coupons and driver subsidies across 19 provinces and more than 70 cities, totaling over RMB 2 million. Longcheng District prosecutors in Chaoyang, Liaoning, charged 163 people, all convicted. Principal defendants Huang and Cai each received three years and six months for combined fraud, personal-information offenses, and teaching criminal methods. Another 34 minor accomplices received non-prosecution decisions but were referred for administrative penalties.

The central distinction is deception, not simply how many discounts you obtain. Genuine eligible participation is an offered promotion. Fake users, invented trades, and concealment of an already completed refund can cause a platform to transfer value on false premises. The amount then affects the applicable threshold and penalty. Below criminal thresholds, platforms may close accounts, recover benefits, and claim restitution of unjust enrichment; administrative sanctions can also apply. Being paid per task by someone in a group does not remove your own role. Selling methods, accounts, or personal data can add separate offenses. For scripts, see chapter 11, entry 3; for accounts, see chapter 8, entry 8 and identity documents.

National People’s Congress (2020). Criminal Law consolidated through Amendment XI, Articles 253-1, 266, and 295. https://jtgl.beijing.gov.cn/jgj/jgxx/flfg/fl/11033925/index.html; Supreme People’s Court and Supreme People’s Procuratorate (2011). Fraud interpretation, Judicial Interpretation 2011 No. 7, Article 1. https://www.spp.gov.cn/spp/sfjs/201802/t20180201_363736.shtml; Standing Committee of the National People’s Congress (2022). Anti-Telecom and Online Fraud Law, Articles 14, 31, 38, 42, and 44. https://www.spp.gov.cn/spp/fl/202209/t20220902_575631.shtml; National People’s Congress (2020). Civil Code, Article 985. https://www.spp.gov.cn/spp/fl/202006/t20200602_463888.shtml; Supreme People’s Procuratorate (2021). Criminal exploitation of e-commerce loopholes, Procuratorate Daily. https://www.spp.gov.cn/spp/zdgz/202106/t20210607_520557.shtml; Supreme People’s Procuratorate (2025). When “coupon farming” becomes suspected fraud. https://www.spp.gov.cn/spp/zdgz/202508/t20250826_704625.shtml; Supreme People’s Procuratorate (2024). Series of telecom-fraud cases in Longcheng, Chaoyang, Legal Daily. https://www.spp.gov.cn/spp/zdgz/202401/t20240124_641099.shtml.