Seven people have been detained in Beijing for allegedly setting up a fake logistics business to swindle customers.

The suspects — including the alleged ringleaders, identified as Huang and Zhao — were taken into custody at a property in Daxing district on April 20.

The raid followed a report that a logistics firm was taking goods and then threatening to confiscate it unless customers paid excessive fees, the capital’s Public Security Bureau said on Monday.

Police said 18 victims claim to have been cheated out of about 200,000 yuan ($31,583).

The first to report the company was a customer surnamed Zhang.

"I chose a logistics company online in early April. I paid 400 yuan and they promised to ship some of my machines from Beijing to Nanjing," Zhang said, according to a statement from the bureau.

"But after waiting for a long time, my goods did not reach their destination. I contacted the logistics company, but they told me to pay another 10,000 yuan or they would seize my goods."

After a preliminary investigation, police found more than 10 similar cases involving the logistics company.

Police have advised residents to select logistics companies from official websites or smartphone apps rather than randomly searching online.