BlockBeats news, on January 7, reported by Phoenix Network, that the Hong Kong police recently dismantled a fraud group that used deepfake technology to lure others into investing in virtual currencies through social platforms, involving approximately 34 million HKD.
According to intelligence, the Hong Kong police's commercial crime unit arrested 31 people, aged between 20 to 34, some of whom claimed to be students and unemployed, involved in the same fraud syndicate, and seized their pre-set 'scripts'.
The Hong Kong police stated that the group would recruit young people looking to 'make quick money' to join, training them to create accounts on dating platforms with fake personas, pretending to have good looks and a luxurious lifestyle, meeting people from overseas, including Taiwan and East Asia, and chatting according to a 'script'. After understanding the other party's background, they would cater to their interests and develop into online lovers, even using deepfake technology for video calls, subsequently luring the other party to invest in virtual currencies, claiming there were substantial returns, and requiring deposits into fake platforms. Once the group received the virtual currency, they would immediately transfer it away and cut off contact with the victims.
The police stated that the fraud syndicate had been operating for at least a year, and their criminal profits had exceeded 34 million HKD.
Hong Kong Commercial Crime Bureau Acting Superintendent Kong Hing-fun said: "They rented two fraud centers located in close proximity to industrial buildings in Kowloon Bay, to disperse risks and increase confidentiality. Most importantly, we noted that these two fraud centers operated in two shifts, aiming to attract more victims day and night. Do not think that participating in some criminal group activities is a small matter; even if you are only assigned to meet victims online and have no direct contact with virtual currency investment work, it is still illegal."
The Hong Kong police remind that conspiracy to commit fraud is a serious crime, and upon conviction, the maximum penalty can be 14 years in prison. Some victims are located outside the territory, and the fraud platforms are not based in Hong Kong. We will cooperate with overseas law enforcement agencies to continue the investigation.
According to reports, the mastermind of the fraud group, the head of the center, and core members totaling 5 people have been charged with conspiracy to commit fraud and money laundering, and appeared in the Eastern District Court on Monday.