- Hong Kong Police uncovered a massive cross-border crypto scam syndicate, arresting 27 people for defrauding victims through romance scams.
- The syndicate used fake cryptocurrency platforms and romance scams, netting over HK$360 million by manipulating victims with AI-driven deepfakes.
- Using AI and deepfake technology, the group tricked victims into believing they were in relationships, leading them to invest in fraudulent crypto schemes.
The Hong Kong Police Force (HKPF) has effectively disrupted a major cross-border fraud syndicate from a factory style premises in an industrial building in Hong Kong. The group, including four women and nine men, used romance scams to trick victims into investing in fraudulent cryptocurrency projects and had reportedly netted more than HK$360 million.
According to a recent report, the operation involved criminals employing ‘romance scams’ or ‘pig butchering scams’ in which the scammers pretends to be in a romantic relationship with the victim before defrauding the latter by asking them to invest in fake cryptocurrency platforms. The Hong Kong Police, based on information received from August to September, were able to locate the chief operations of the fraud group in Hung Hom, an industrial district.
Police Storm Crypto Scam Base
On October 9, police officers stormed a 4,000 square feet compound which was the headquarters of the syndicate. This center was described as large and elaborate for such deception, and was highly organized. Police detained 27 people, 21 men, and 6 women, aged between 21 and 34 years old, for conspiracy to defraud and possession of weaponsAWs. The arrested persons were some of the most important people in the scam, for instance the technical people who aided in the development of the fake platform.
The scam organization hired University graduates as the technology specialists and targeted the graduates with the digital media degree. They allied with international fraudsters and IT gurus to create a fake cryptocurrency trading website to dupe innocent people.
AI-Driven Crypto Scam
Police said that the syndicate had also provided its members with guidelines in Chinese and English languages on how to create fake relationships with victims on the internet. In a new wave of crypto scams, the fraudsters employed an array of artificial intelligence technologies, including deepfakes, in real-time video chats with targets and lured the victims into thinking they were in a romantic relationship.
In these deceptive online romances, the victims, mainly male from mainland China, Taiwan, India and Singapore, were lured into investing a lot of cryptocurrency. A majority of the arrestees were males, and, likewise, the victims comprised many male persons.
The investigation is still ongoing as the HKPF is still trying to discover more about the international link of this highly organized crypto scam syndicate. The police has also urged the public to be vigilant and informed especially on the current crypto-based romance scams.
