Fare Play: China Targets Ride-Hailing Drivers Using Fraud Software

Thousands of ride-hailing passengers in China may have paid inflated fares without realizing it. Police across the country have cracked down on drivers using illicit software to manipulate orders — boosting fares, faking locations, and cutting wait times.

Authorities in Shanghai alone have arrested 60 suspects for fraud, with similar cases emerging nationwide, state broadcaster CCTV reported Tuesday. The illicit software, widely available online, allows drivers to increase trip costs by 30 to 80 yuan ($4–11) per ride and position them in high-demand areas like airports without actually being there.

The growing black market for cheating software is also spreading into food delivery, freight, and express services, raising concerns about widespread fraud, according to a report by state-run Economic Daily. The report warned that unchecked manipulation could create an industry where dishonest practices outcompete legitimate ones, pushing more workers toward deceit to stay competitive.

This past December, a CCTV investigation found cheating software widely available on online platforms, with prices ranging from tens to hundreds of yuan. Ride-hailing drivers admitted to using these tools to manipulate order distances, extend their online presence, and bypass platform penalties for rejecting unwanted trips.

In recent weeks, Shanghai police have taken criminal coercive measures against 60 suspects on fraud charges. Of them, four have been formally approved for arrest, and more than 40 have been prosecuted. The case remains under investigation.

China’s top ride-hailing platform, Didi Chuxing, has also stepped up enforcement. In 2023, the company identified and blocked more than 200 cheating tools and banned over 1,000 drivers for repeated violations.

Authorities say some software lets drivers trick the system by virtually relocating to high-demand areas, skipping queues, and grabbing premium fares. A seller of such software told CCTV that they sell preloaded phones, complete with tutorials, for 1,000 yuan. 

Last November, police in Fuxin, in the northeastern Liaoning province, uncovered a scheme where a suspect infiltrated a group chat with hundreds of drivers to sell fake location software. Authorities arrested 12 suspects, including a developer, and shut down 220,000 ride-hailing accounts involved in the scam. 

In Beijing, two ride-hailing drivers were recently sentenced to prison and fined for using cheating software to alter their location and mileage for profit, CCTV reported.

(Header image: VCG)