Spread the word. It goes like this. YOU are in the back seat (usually). You hand the driver some small bills - for example - a 20Y note, a 5Y note, and couple ones. He hands one back to you, but he has torn a little corner off one or more notes (without you seeing), and he tells you. "This is not good. Its torn."

Maybe you hand him a different one. He takes the next bill, and does the same thing.

So you pull out a good 100Y note, hand it to him, and he switches it with a COUNTERFEIT 100. (remember, you're in the back seat, so slight of hand tricks are pretty easy for the driver.)

Now, the driver gives you a phony bill, maybe with a torn corner, says its bad, and you hand him a SECOND (good) one hundred.

He may even do this a second or third time, TAKING two or three of your good 100Y notes, before he finally gives you correct change - and leaves you with the fake 100Y notes - and your change.

SOLUTION:
1) Go on HIGH alert when a driver hands you back ANY note and says "This is bad." A note with a torn corner is LEGAL TENDER.

2) Right then, make a note of the drivers LICENCE card, ( above the glove box. Often, this will SHUT down the scam, cuz they know you've got evidence.

3) Get the licence plate.

4) Do NOT rely on the receipt to report the driver, because they will often rig the meter to print a receipt that has NO driver ID.

5) When you hand the driver you first good 100Y, glance at the serial number. (And you will see that its different when he hands it back and says "Its bad" (If he's still thinking you're a sucker.)

6) If he rejects your bill - tell him he's busted. Say "That's not my money. That's your money. Where is my money? " At this point, they will get angry, but dish out your correct change.

NOW DIG THIS - NO KIDDING - I've talked to a lot of Chinese people about this, and they almost ALL agree, that in Chinese culture, at this point, it is totally LEGIT to PUNCH the guy. Really. If you're a gal, scream angrily and walk away. But, if you're one of those polite, civilized white dudes, and like me, you're frustrated that life never gives you the chance to punch a guy for legit reasons, and you're pretty confident about your ability to handle a guy who is (probably) a far less capable boxer, and still afraid of his mother, then get your change, and let him have one, and kick his car as he leaves. He won't press charges. (When I say give a man a punch, I don't mean five. A black eye is well deserved. A trip to the hospital is not.) And all this macho advice is actually from my CHinese friends. So, when in China.... do as the Chinese do.

Then CALL THE TAXI COMPANY, and REPORT THE GUY. Rearlly important. The Beijing Taxi Service (company) is good. They know that we foreigners rarely just make up stories and take the time to call them, so ANY call from a foreigner will get the driver in trouble, especially if you threaten to tell 'all your friend who work for the embassy."

ALL This is based on personal, direct experience with this SCAM. It's happened to me twice. Once they got the money. Once I caught the guy (but he had a FAKE receipts so I cannot report him) Regrettfully, I was a little TOO nice, and I did not punch him, but oh boy, NEXT TIME.....

HOPE THIS HELPS my FELLOW EXPATS

DO YOU have a TAXI SCAM you can share?