China will roll out stricter penalties for those involved in telecom and internet fraud starting Dec. 1, as authorities seek to clamp down on a surge in such crimes, officials said on Tuesday.

A new guideline, known as "joint punishment measures for telecommunications and internet fraud and related crimes," has been jointly issued by the Ministry of Public Security (MPS), the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the People's Bank of China, according to MPS officials.

Set to take effect on Dec. 1, the new measures aim to strengthen the enforcement of the country's anti-telecom and online fraud law.

Telecom and network fraud has surged largely due to a thriving underground economy that supports such illegal activities, according to Zheng Xiang, deputy head of the Criminal Investigation Bureau of the MPS.

Operators in these black and grey markets facilitate fraud by renting or selling SIM cards and bank accounts, trading personal information, promoting online traffic, developing software and engaging in money laundering schemes, he explained.

Zheng added that fraud cases have been exacerbated not only by increasingly sophisticated techniques, evolving tactics and the relocation of operations overseas but also by fraud rings' ability to continually obtain critical tools.

These tools include mobile phone cards, IoT (Internet of Things) cards, SMS (Short Messaging Service) gateways, bank accounts, payment accounts and internet identities, which are often acquired through purchase, rental or borrowing under other individuals' names.

Despite existing legal measures, including the introduction of aiding cybercrime as a criminal offense in 2015 and stricter guidelines in 2021, the problem persists, Zheng noted.

Targeting various aspects of telecom fraud, the guideline encompasses 18 articles, establishing criteria for identifying offenders and outlining proportional punishment.

Offenders could face financial, telecom and credit restrictions lasting up to three years, depending on the severity of their involvement, according to the guideline. For repeat offenders, penalties may extend to five years.