Hong Kong police dismantle a virtual currency investment scam syndicate using deepfake technology, with about HK$34 million involved
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Hong Kong police dismantle a virtual currency investment scam syndicate using deepfake technology, with about HK$34 million involved
According to Phoenix News, Hong Kong police have recently dismantled a fraud syndicate using deepfake technology to deceive individuals into investing in cryptocurrencies via social media platforms, involving approximately 34 million yuan. Based on intelligence, the Commercial Crime Bureau of Hong Kong police conducted raids last week in two industrial buildings in Kwun Tong, arresting 31 people aged between 20 and 34, some of whom were students or unemployed, all linked to the same fraud group. Police seized prepared scripts used by the suspects. The syndicate recruited young people seeking to "make quick money," training them to create fake online personas on dating platforms, pretending to have attractive appearances and luxurious lifestyles. They targeted individuals overseas, including from Taiwan and other East Asian regions, engaging with them according to pre-written scripts. After learning about their victims’ backgrounds, they would flatter and emotionally manipulate them, developing romantic online relationships, and even using deepfake technology for video calls. Eventually, they lured victims into investing in cryptocurrency, promising high returns, directing them to deposit funds into fake investment platforms. Once the digital assets were transferred, the group immediately moved the funds and cut off contact with the victims. Acting Chief Superintendent of the Commercial Crime Bureau, Mr. Hung Hing-kwan, stated: "They rented two adjacent industrial buildings in Kwun Tong as fraud centers to diversify risks and enhance secrecy. Most notably, we found these two centers operated in day and night shifts, aiming to continuously target more victims around the clock. Never think that participating partially in such criminal operations is harmless—engaging in any role, even just being assigned to initiate contact online with victims without directly handling cryptocurrency transactions, is still illegal." Police indicated that the fraud syndicate had been active for at least one year, accumulating illicit profits exceeding 34 million yuan. The masterminds, center managers, and key members of the syndicate...
Navigating Web3 tides with focused insightsTechFlow news, January 5 — According to Phoenix News, Hong Kong police recently dismantled an investment scam syndicate using deepfake technology on social media platforms to defraud victims into investing in cryptocurrencies, involving approximately 34 million yuan.
Based on intelligence, the Commercial Crime Bureau of Hong Kong Police last week arrested 31 individuals aged between 20 and 34 in two industrial buildings in Kwun Tong. Some of them were students or unemployed. They belonged to the same fraud ring, and police seized prepared scripts used by the group. The syndicate recruited young people seeking to "make quick money," trained them to create fake identities on dating platforms, posing as attractive individuals living luxurious lifestyles, and contacted people overseas—including Taiwan and other East Asian regions—engaging in scripted conversations. After learning about their targets' backgrounds, they would flatter them, develop online romantic relationships, and even conduct video calls using deepfake technology. Eventually, they lured victims into investing in cryptocurrencies with promises of high returns, directing them to deposit funds into fraudulent platforms. Once the virtual assets were received, the group immediately transferred them and cut off all contact with the victims.
Acting Chief Superintendent of the Commercial Crime Bureau, Mr. Hung-King Hung, stated: "They rented two adjacent industrial buildings in Kwun Tong as fraud centers to diversify risks and enhance secrecy. Most importantly, we observed that these two centers operated around the clock in day and night shifts, aiming to ensnare more victims without interruption. Never assume that participating partially in a criminal organization's activities is trivial—even if you're only tasked with contacting victims online and not directly involved in cryptocurrency investment schemes, it remains illegal."
Police said the fraud syndicate had been operating for at least one year, generating illicit profits exceeding 34 million yuan. Five key members, including the ringleader, center managers, and core operatives, have been charged with conspiracy to defraud and money laundering, and appeared at Eastern Magistrates' Courts on Monday.
