Chinese police have warned farmers and grain brokers to stay alert for a sophisticated fraud scheme in which criminals pose as buyers to launder money through grain transactions.

The warning follows the recent dismantling of a scam operation in Xiangyang, Hubei province, which authorities say reflects a broader pattern nationwide.

According to a report aired Wednesday by China Central Television, suspects typically contact sellers online, offering to buy grain at attractively high prices and making upfront payments to build trust. The transferred funds, however, are often proceeds from other fraud cases. By purchasing grain, the criminals seek to convert illicit money into legitimate goods.

The report highlighted the case of a local grain broker, surnamed Lyu, who was contacted in September after posting a video of wheat for sale on social media.

A buyer quickly accepted Lyu's above-market asking price and wired 500,000 yuan ($70,785) in full without inspecting the grain — an unusually fast and favorable deal that raised Lyu's suspicions.

When trucks arrived to collect the wheat, Lyu noticed that the on-site foreman, identified as Hu, appeared unfamiliar with the grain trade. The company information Hu provided also did not match the bank account details. Lyu then alerted police.

Investigators later found that Hu was a low-level operative recruited online in late August through an advertisement seeking "offline field personnel." After being hired, Hu was instructed to download a private messaging app, where he received detailed scripts telling him how to respond to police inquiries, answer sellers' questions and communicate with truck drivers during transactions.

Authorities said Hu was dispatched across the country to supervise grain shipments and was paid commissions based on shipment weight. He has since been taken into custody by police in another jurisdiction in connection with multiple regional money-laundering cases.

Police warned that farmers and brokers who accept suspicious payments risk having their bank accounts frozen and may unwittingly assist criminal activity.

They urged vigilance against buyers who raise red flags, including offering prices well above market levels with no negotiation, making full payments upfront without inspecting goods, providing unclear or inconsistent business credentials, or showing a lack of basic industry knowledge.

Authorities advised anyone encountering questionable transactions to contact police immediately, noting that deals that appear "too good to be true" during harvest season often are.