Almost 1700 reports of scams involving threats of arrest, and of extortion via fake kidnappings have been made to Scamwatch in the year to date.

Australian Competition and Consumer Commission acting chair Delia Rickard said there was a 400 per cent increase in reports in May, and losses nationwide almost doubled.

“These scams are particularly nasty and worryingly we’re seeing a dramatic spike in the Chinese community being targeted,” she said.

One of the most prevalent variations of the scam involves a caller, speaking in Mandarin, impersonating a parcel delivery service and/or Chinese authorities.

According to the ACCC, the scammer claims the victim is in ‘serious trouble’ after having been named as the intended recipient of a package containing fraudulent documents such as fake passports, which has been intercepted.

The scammer threatens the victim with extradition to China to face criminal charges in court unless they receive a sum of money, which the scammer claims to be necessary to prove the victim’s innocence while the supposed crime is being investigated.

“In the past month, Scamwatch has received multiple reports of a cruel variation of this scam targeting Chinese students in Australia,” Ms Rickard said.

“The scammer will again claim to student victims that they have been involved in criminal activity and threaten them, and even their family, with criminal sanctions unless they pretend they have been kidnapped, including by taking photos of themselves bound and gagged.

“Scammers will then use these photos to extort money from the student’s family by claiming the student has been kidnapped.”

Scammers have also been reported to have left voice messages, in Mandarin, seeking an ‘urgent’ call back.

Ms Rickard said the most important thing members of the Chinese community in Australia could do to protect themselves from the scam was to be aware of how it worked and to warn their friends and family.

“If you’re ever called by someone making threats about arrest or deportation, it is a scam. It’s very frightening to receive these calls and scammers use your fear against you so you’ll send them money or participate in a bogus kidnapping,” she said.

"Don’t fall for their threats. Instead, hang up the phone and report it to your local police. If you think the scammer has your bank account details, contact your bank immediately.” 

Members of the Chinese community in Australia can also report the scam at www.scamwatch.gov.au.