He said about $1000 in cash was recovered when police swooped on the alleged ring in the CBD on Monday and Tuesday.

"We had up to say $600 with certain individuals, others had as little as $48," Mr Travaglini said. "But as I said, who knows how they're operating? They could be going to foreign exchanges and changing money through the day."

He said the six Chinese nationals had been in Australia for at least three weeks, some longer, and it was believed all had access to the same CBD accommodation.

Mr Travaglini could not say if it was the work of international gangs, but said the matter had now been referred to the Australian Federal Police.

“We’re in the community, we’re talking to residents, we’re talking to stakeholders, we’re gathering evidence – Victoria Police are an intelligence-led organisation – and this is the first time in all the years I’ve been policing the Melbourne CBD that I’ve ever come across anything like it," Mr Travaglini said.

Major Brendan Nottle from the Salvation Army said his staff first became suspicious about two weeks ago when police dropped off the first of two elderly and vulnerable Mandarin speakers unable to communicate in English.

Concerns only increased when investigations revealed the cases had striking similarities.

Authorities discovered the allegedly fake beggars had a cushion with the same type of fabric, the same calico bag and the same type of fabricated clothing.

"They're wearing clothing with patches fixed to outer garments," Mr Travaglini said. "And, it also appears, (with) deliberate worn out holes, almost stereotypical of what they might perceive a homeless person to be wearing, which I can tell you is not always the case."

Major Nottle said he had never seen anything like it in his 17 years working with the Salvation Army in Melbourne.

"I actually felt physically sick when I saw what was taking place across the city," Major Nottle said. "Because there are people in this city – the vast majority of them that we see sleeping rough – who are in absolute genuine need and they don't need our judgement. They need our compassion, our care and support."

He said in several cases the supposed rough sleepers requested return tickets to China when concerned Salvation Army officers asked through translators what assistance they needed.

Mr Travaglini said it was up to the Australian Border Force to determine if the Chinese nationals would be deported, but confirmed none of them were currently in custody.

It is believed all but one of the seven people charged have refused offers of support from Victorian services.

"They're not vulnerable people," Mr Travaglini said. "They have access to housing and they're just taking advantage and deceiving the good people of Melbourne.

"I mean, we're a generous bunch and clearly they're taking advantage of that and they need to be taken to task, and we need to nip it in the bud."

Major Nottle asked Melburnians not to assume the worst about people on the streets, most of whom were genuine and in need of help.

He encouraged people to have a conversation with rough sleepers if they felt safe to do so, buy them a coffee and direct them to the Salvation Army.

Lord Mayor Sally Capp said there were better ways to support genuine rough sleepers than by giving them money.

"So all those generous Melburnians and the visitors to our city, we love the fact that they’re so caring, but the sort of care that we can provide is better supporting the Salvos – the meals they provide, the safe spaces they provide for the most vulnerable – and other organisations.

"(It's) having those conversations with people in the street to know we see them, we value them, we respect that they are in need, and the best way we can help them is refer them to a service agency."

Police continue to investigate with the support of ABF and AFP.