Hong Kong Authorities Uncover Fraud Syndicate
Hong Kong authorities have uncovered a fraudulent syndicate that used deepfake technology to carry out a cryptocurrency scam worth $43 million. This scam resulted in the arrest of 27 individuals, including university-educated graduates.
According to local media reports, the syndicate had been operating since October of last year in an industrial unit spanning 4,000 square feet in Hung Hom.
Fraudsters Used AI to Create Attractive Female Personas
The fraudsters allegedly used artificial intelligence to swap their faces with those of attractive women during video calls. This deepfake technology allowed the male fraudsters to create appealing identities, helping them gain the trust of victims across Asia, including in Singapore, mainland China, Taiwan, and India.
Chief Superintendent Fang Chi-kin revealed that the group recruited digital media graduates to develop fake trading platforms and manage their online operations.
Victims Lured into Investing in Cryptocurrencies
Once trust was established, the fraudsters introduced cryptocurrency investment opportunities. To lure victims into investing, they showed fake trading records to convince them to invest large sums of money. Many victims realized they had been scammed only when they were unable to withdraw their funds.
Police Seized Equipment and Cash
During a raid on October 9, Hong Kong police seized more than 100 mobile phones, computer equipment, luxury watches, and over 200,000 Hong Kong dollars in cash. The suspects, aged between 21 and 34, face charges of conspiracy to defraud and possession of offensive weapons.
Authorities also discovered training materials instructing the fraudsters on effective tactics to manipulate victims. They found a "performance board" highlighting the top earners, with the most successful scammer allegedly earning $266,000 in a single month.
âThey set up a performance board. Teams and members who successfully scammed the most victims were listed. The top earner last month made $266,000,â said Superintendent Iu Wing-kan.
Crypto Regulation in Hong Kong
These details of the crypto scam surface as Hong Kong tightens regulatory scrutiny of its cryptocurrency market. The Hong Kong Securities and Futures Commission (SFC) is currently reviewing nearly a dozen crypto platforms for potential licensing.
SFC CEO Julia Leung announced that 11 platforms applying for approval to operate crypto businesses had undergone on-site assessments. The SFC plans to issue licenses in batches to virtual asset trading platforms (VATP) to ensure regulatory compliance. Although these platforms are currently operating under a âdeemed licensedâ status, the SFC has warned traders not to engage with them until they are fully licensed.
The SFCâs approach includes granting conditional licenses to compliant platforms while stripping those that fail to meet regulatory requirements of their licensing qualifications.
#cybersecurity , #Cryptoscam , #hackers , #hacking , #deepfake
Stay one step ahead â follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.â
