Startup aims to help stop business fraud

Artificial intelligence technologies can be used to prevent business frauds involving shell companies and false “fapiao,” or invoices, Shanghai-based business data startup Qixinbao said on Thursday. 

Regulators have strengthened their efforts in fighting business fraud and AI and data analysis technologies will help, it said.

With a new "Enterprise Panorama” function, users can check enterprises for business value, growth stage, region, industrial chain, financial qualifications and technology certification. With integrated data analysis and other smart risk control features, users and regulators can easily find shell or “invoice-only” firms without a core or solid business, according to Qixinbao.

The startup, with a database of 220 million Chinese enterprises and 100 billion lines of business information, is one of the biggest business data consultancy firms in Shanghai.

Regulators are cracking down on business frauds, such as the case of a man with 100 shell companies in Huzhou and a company in Shaoxing making false invoices valued at 480 billion yuan (US$76.2 billion), according to media reports.

Guangdong, Shandong, Zhejiang and Jiangsu provinces are the regions with the largest number of shell companies, with most involved in wholesale and retail, and leasing and business services, according to Qixinbao.