Members of the Chinese community in Australia are being targeted by scam artists who have extorted more than $1 million after scaring people into thinking they have been caught up in criminal activity.
The Australian Competition and Consumer Commission says it's received 1700 reports about the scams which have seen unsuspecting people in NSW, Victoria, Queensland and Western Australia hand over $1.15 million this year.
Scammers impersonating a parcel delivery service or Chinese authority have been calling people claiming they are in serious trouble because they are linked to criminal activities, and will be extradited to China if they don't hand over money.
The ACCC is warning people not to fall for their threats.
"Instead, hang up the phone and report it to your local police," acting chair Delia Rickard said on Monday.
"If you think the scammer has your bank account details, contact your bank immediately."
One of the schemes targets Chinese students who are telephoned by scam artists accusing them of breaking the law.
The students are threatened with being charged unless they pretend to have been kidnapped by posing for photos showing them bound and gagged.
"Scammers will then use these photos to extort money from the student's family by claiming the student has been kidnapped," Ms Rickard said.
The second type of scam involves Mandarin-speaking scammers claiming the person is in serious trouble because a package addressed to them has been intercepted and found to contain fraudulent documents such as fake passports.
They are then threatened with being extradited to China to face charges unless they send money to prove their innocence while the crime is investigated.
Ms Rickard described the scams as "particularly nasty", saying there was a five-fold increase in reports to the watchdog regarding the scams in May.
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