First, there were fake Apple stores, then a fake local government. This month, police had shut down a fake bank. 

The fake bank, located in the eastern city of Nanjing, was managed by three farmers. It is known to have duped nearly US$33 million from over 200 depositors. The three are now in police custody.

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The fake bank had everything a real bank has. There were security guards, computers, and screens which showed real-time interest rates and foreign exchange rates.

Oliver Rui, a Finance teacher at China Europe International Business School in Shanghai said, Chinese depositors were easily fooled.

"People are not well-educated on financial services," said Rui. "People think as long as there is an office, looks like a bank and will provide the bank's service."

The bank, which opened in 2013, used higher rates as bait to lure depositors into investing their hard-earned money.

A man named Shan, one of the many who fell into the trap, told China National Radio that he deposited almost US$1 million in the bank. The amount immediately  earned him an advanced interest of a whopping US$54,000. But when he later returned for his money, he could no longer get it back.

In 2011, a fake Apple store was discovered in Kunming, which triggered an investigation. Police have uncovered 21 more in the south west. The set-up was so convincing that even the staff was made to believe they were working for the real U.S. tech giant.

The practice of producing fakes had been deeply-rooted in Chinese culture. It became so popular and widespread that there is now a Chinese word for it -- Shanzhai.

Rui blamed the Communist Party for ruining the traditional Chinese values.

"People are lacking religion, lacking faith," Rui said. "They don't have basic moral standards."

Unless that changes, "shanzhai" will be passed on to future generations, Rui added.

Tagsfake bank, shanzai, high interest rate, Nanjing