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Alibaba, Baidu Ordered to Ramp Up Fraud Prevention

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Alibaba, Baidu Ordered to Ramp Up Fraud Prevention

Alibaba Group Holding Ltd. and Baidu Inc.’s cloud operations have been instructed by China’s internet industry regulator to increase their efforts in fighting online and telecommunication fraud.

According to a notification released on WeChat on Tuesday by the Ministry of Industry and Information Technology, the two cloud platforms were providing access to a huge number of scam websites, and the regulator urged them to fulfill their network and information security responsibilities.

READ ALSO: Court Remands Managing Director Over Alleged $232.8m Fraud

The talks were held by the ministry’s cybersecurity bureau and the country’s public security bureau.

Both companies were told to take corrective measures in accordance to the Cybersecurity Law, or risk facing severe punishment, the notice said.

The firms agreed to further strengthen the management of website access, domain name registration, and information services, it added.

The background: China has been ramping up efforts to crack down on cybercrimes. Last October, a national campaign was launched to clean up criminal syndicates, and eliminate SIM and bank cards used for fraudulent purposes.

It was gathered that within the year, a total of 27,000 gangs were busted and 45,000 suspects were picked up, state-run Xinhua News Agency reported.

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