Despite repeated warnings, swindlers continue to use cell phone text messages to rip off unsuspecting local residents, and police don't know how to solve the problem.

The Shanghai Public Security Bureau held its third news conference in eight months yesterday to warn city residents to be wary of any SMS message that encourages them to call a phone number and give out personal information, such as bank card pin numbers.

While fewer than 100 SMS scams were reported last year, a police hot line has heard an average of 1,000 complaints about fraudulent text messages every day this year, according to Yang Weigen, vice director of the General Team of Shanghai Criminal Investigation.

Most of the scams attempt to convince gullible locals to transfer money from their bank accounts to the swindler's account by bank machine or in person.

Police wouldn't say yesterday how many cases they are investigating, or how many people have been arrested for involvement in such scams.

Many of the schemes follow a similar plan as the one used to dupe a victim surnamed Jin last fall.

On October 31, Jin received a text message saying his bankcard was used to make a 3,000 yuan (US$370) purchase at the New World Department Store.

Jin then dialed a phone number listed in the message to report that he hadn't been shopping at the store.

After talking to a man posing as "police officer Chen Yang" from the "anti-fraud department" and another man calling himself Dean Li who claimed to work for the Shanghai Finance Administration, Jin was convinced that someone was embezzling money from his bank account and was persuaded to transfer 270,000 yuan into a new account.

"Dean Li told him to input a 19-figure code that could ensure the security of the new bankcard through an ATM and warned him not to use the card until a week later," Yang said, explaining the pin number was actually the suspect's bank account number. 

On November 3, Jin checked his bank account and found it only contained about 1,000 yuan.

Another two victims identified as Wu and Lin were involved in similar schemes and defrauded out of 23,900 yuan and 125,000 yuan respectively.

(Shanghai Daily January 25, 2006)