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Sunday, February 04, 2024
Tencent strengthens anti-fraud investigations, dismissing over 120 employees for misconduct
Global Times

China's internet giant Tencent ramped up internal anti-fraud efforts, leading to significant action against fraudsters last year.

On Friday, the company revealed more than 70 cases violating the company's compliance rules, resulting in the dismissal of over 120 individuals, of whom nearly 20 were suspected of criminal offenses and handed over to judicial authorities.

This marks an increase in the number of employees dismissed and reported to the authorities compared to the previous years. About 100 and 70 employees were dismissed in 2022 and 2021, respectively.

The 17 cases disclosed by Tencent on Friday revealed that the majority frauds involved Tencent's Cloud and Smart Industries Group (CSIG) and Platform and Content Group (PCG), accounting for more than 80 percent of all cases.

CSIG has been a significant revenue contributor for Tencent in recent years, especially after an organizational restructuring in 2018. PCG, being the largest business group within Tencent, encompasses all of the company's older business lines, which Pony Ma Huateng, CEO of Tencent described as "particularly challenging."

Tencent has shown commitment to addressing corruption, transitioning from relying solely on whistleblowing to a new system where half of the fraud detections are automated. The company has a zero-tolerance policy for violations of its "high-pressure line," with individual fraudsters being permanently blacklisted and reported to the authorities if illegal activities are suspected.

The recent efforts are part of a broader trend among Chinese internet giants to fight internal corruption. For instance, Meituan.com reported 41 criminal cases in 2022, taking 107 individuals to judicial organs, involving both employees and external partners.

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