756 fraud cases found on Xiaohongshu in 2025: report

Taiwan’s Criminal Investigation Bureau (CIB) has detected 756 fraud cases linked to the Chinese social media app Xiaohongshu, also known as RedNote, from January to November 2025.

Fraud types most commonly reported include fake online auctions (283 cases), canceled installment payment scams (196), fake investments (51), catfishing (43), and sex service scams (23).

In comparison, 950 cases were reported in 2024.

The CIB said scammers often contact victims through Xiaohongshu’s trading features before directing them to external messaging apps like LINE and fraudulent trading platforms, where victims are then tricked into transferring money.

From August 2024 to November 2025, authorities reported 58,882 fraudulent websites to the Taiwan Network Information Center for domain blocking.

🔗 Source: Focus Taiwan

🧠 Food for thought

Implications, context, and why it matters.

Compliance failures drove Taiwan’s Xiaohongshu ban

From Jan 2024 to Nov 2025, the Criminal Investigation Bureau logged 1,706 Xiaohongshu-linked fraud complaints 1. Meta platforms got three fines in 2025 totaling NT$18.5 million for disclosure gaps and slow scam takedowns, while nearly 70% of people in Taiwan encountered phone or internet scams in 2024 1 2.
Officials used Article 42 emergency powers under the Fraud Crime Hazard Prevention Act (a 2024 anti-fraud law) to suspend the app 1. Xiaohongshu lacks a local legal representative and an identity check system, plus a fraud prevention plan in Taiwan 1. It failed all 15 cybersecurity tests for excessive personal data collection 1.

Security and compliance vendors see openings as Taiwan tightens platform rules

The Fraud Crime Hazard Prevention Act took effect on July 31, 2024, adding duties for ad platforms, e-commerce sites, plus financial institutions 3. MODA added Threads to the list and measures start Sept. 15, 2025; required steps include advertiser identity checks, a fraud plan plus removal or restriction of scam content within 24 hours of notice 4 5.
Penalties range from TWD 200,000 to TWD 10 million, with traffic limits or Domain Name System suspension for repeat violations; MODA also fined Meta TWD 1 million for disclosure failures 6. Vendors can sell AI transaction monitoring, behavioral analytics, federated learning systems (which train models across distributed data sources without moving raw data), or automated case management to meet annual reporting and real-time detection demands 7.