A SHENZHEN-BASED copycat company, named Ant Financial Service (Shenzhen) Technology Information Ltd., was shut down for allegedly being involved in online pyramid selling and fraud, the Southern Metropolis Daily reported.

    The suspected company confused its clients by using a name similar to the Ant Financial Services Group, widely known as Ant Financial, one of the leading financial service platforms in China, which belongs to Alipay.

    The two companies shared a similar name, “Ant Financial Service,” which caused a lot of residents to think the Shenzhen company was the same as the reputed Alibaba company in Hangzhou.

    Public information registered with Shenzhen’s industrial and commerce department shows that the Shenzhen company was founded in October 2012 by two people named Zhou Zhaohui and Wang Maohua. Alibaba has denied that it had anything to do with the Shenzhen company.

    The Shenzhen Consumer Council said they had recently received 17 complaints against the Shenzhen Ant Financial company, claiming that the company had swindled consumers out of money by convincing them to buy petrol cards valued at 3,000 yuan (US$436.27) each, but never providing them with the cards.

    By using their mobile phone app and WeChat public account, the Shenzhen copycat company attracted people to pay the initial 98 yuan membership fee and then persuaded them to upgrade to a VIP membership by purchasing the petrol card.

    When accepted as VIP members, the consumers could then develop their own groups on the online platforms by recommending others to join the activity and earn profits from it. (Zhang Qian)