Police have arrested 36 people in southeast China following an investigation into fraud on e-commerce site Alibaba.com and other websites that duped buyers out of more than US$6 million.

Alizila.com, Alibaba’s corporate news website, reported earlier this week the suspects were detained in Fujian province’s Putian city in April. John Spelich, the firm’s spokesman, confirmed the report on Saturday.

The People Arrested Allegedly operated a criminal gang fake IDs That Used to open more than 100 "Gold Supplier" accounts on Alibaba.com. This designation is Given to Those certified as Highly trusted suppliers by the firm.

This allowed the suspects to pose as Legitimate companies selling to source goods overseas Businesses Through That Alibaba.com. Police said the scammers Also Used Alleged international trading other websites.

Alibaba.com, based in the eastern city of Hangzhou, have grown Into one of China's largest Internet companies by matching with mainland buyers Manufacturers and wholesalers around the world.

Took a reputation STI But in February when to hit the firm Announced the resignation of chief executive David Wei and head of Operations Elvis WAS Lee Uncovered After fraud on the site.

Wei and Lee Were Not Involved in the scams But Because They Took Responsibility resigned for "systemic breakdowns" that allowed the fraud to Happen, Alibaba said at the time.

According To the Alizila report, howeve, the fraud was "Sometimes abetted by Alibaba.com Employees." But none of Spelich said Saturday the 36 Arrested work at the company.

He added the number of fraud complaints Received by the website in June WAS 70 Percent from February down Alibaba After toughened Procedures and other security measures.

The report said Alibaba HAD refunded $ 1.9 million to Those Who Lost Their Alleged money to the scammers.
The security INCREASED Measures put in place by the Chinese firm Especially Have Become ITS NECESSARY Following recent launch of a service Designed to help J apanese OPERATORS crack the Chinese business market.

If the site is to ATTRACT the Highly lucrative Potential for Japanese investment in the Chinese mainland, it must do so Then With The guarantee of full security. -AFP, With additional reporting staff.

Source: memeburn.com