BlockBeats news, on January 7, according to Phoenix Network reports, the Hong Kong Police recently dismantled a fraud group that used deepfake technology to lure others into investing in virtual currency through social media platforms, involving about 34 million HKD.
According to intelligence, the Hong Kong Police Commercial Crimes Bureau arrested 31 people last week in two industrial buildings in Kowloon Bay, aged between 20 and 34, some reported as students and unemployed, involved in the same fraud group, and seized their pre-set "script."
The Hong Kong Police indicated that the group would recruit young people wanting to "make quick money" to join, training them to create accounts on dating platforms with fake identities, pretending to have good looks and a luxurious lifestyle, to meet people from overseas, including Taiwan and East Asia, and chat according to the "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 currency, claiming substantial returns, and requesting deposits into fake platforms. Once the group receives the virtual currency, they will immediately transfer it away and cut off contact with the victims.
Police stated that the fraud group has been operating for at least a year, with criminal profits exceeding 34 million HKD.
Hong Kong Commercial Crime Bureau Acting Chief Superintendent Kong Hing-hun stated: "They rented two fraud centers located adjacent to industrial buildings in Kowloon Bay to disperse risk and increase confidentiality. Most importantly, we noticed 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's work is just a minor matter; even if you are only assigned to meet victims online without direct contact with virtual currency investment work, it is still illegal."
The Hong Kong Police reminds that conspiracy to commit fraud is a serious crime, and once convicted, the maximum penalty can be fourteen years in prison. Some victims are located overseas, and the fraud platform is not based in Hong Kong, and we will cooperate with law enforcement agencies abroad to continue the investigation.
According to reports, the mastermind, center head, and core members of the fraud group, a total of 5 people, have been charged with conspiracy to commit fraud and money laundering, and appeared in the Eastern Magistrates' Court on Monday.