An elaborate antique scam was busted by police last week in Shanghai, authorities said on Thursday. 

In a citywide arrest last Thursday, police apprehended 450 people who were members of 26 criminal gangs involved in the scam, but only 370 people were detained. 

The scam has gathered more than ¥50 million ($7.6 million) during its illegal operations. Police started receiving complaints from victimized clients at the end of last year and investigations commenced in January this year. 

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Scammers register their "businesses" as art galleries or auction houses and establish headquarters in Shanghai's high-end commercial buildings. 

Clients are immediately approached by a person who claims to be an appraiser and tells them that their items are genuine antiques. The clients are then charged ¥600 ($92) for the initial appraisal. 

"The victims, who think they have precious antiques, are usually attracted by the companies' fake auction or exhibition online," police officer Wei Tao told Shanghai Daily. 

They will then tell their victims to send the "antiques" in another appraiser for a "professional appraisal" that costs ¥10,000 ($1,500). In the end, the nonexistent buyer cancels the transaction, saying that the antiques did not pass the standards. 

"Any completely worthless artifact will be appraised as worth millions of yuan," he said.  

Currently, there are 99 companies in Shanghai that fit the scams. 

"There's a lack of regulation in the industry, which make supervision difficult."

Tagsantiques, crackdown in Shanghai, Shanghai, scams in Shanghai, police arrests