Hong Kong Police Arrest 27 in $46 Million Deepfake Crypto Romance Scam

Jimmy Aki
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Hong Kong police have cracked down on a major deepfake cryptocurrency romance scam, leading to the arrest of 27 people, including university graduates and suspected triad members. The scam defrauded victims of $46 million through fake online relationships and fraudulent cryptocurrency investments.

How the Scam Worked

According to a local report, the syndicate behind the romance scam used advanced deepfake technology to impersonate attractive women, convincing victims to invest in fake crypto platforms.

The scam targeted individuals in Hong Kong, mainland China, Singapore, and other regions, luring them into believing they were making legitimate investments.

The criminals utilized AI-generated photos of women to initiate romantic conversations with victims online. They went as far as using deepfake technology to replace their own appearances and voices during video calls, making it even harder for victims to suspect foul play.

Senior Superintendent Fang Chi-kin, head of the New Territories South regional crime unit, stated, “They even discussed future plans with the victims, creating a false sense of happiness to encourage them to continue investing.”

Victims were directed to fake cryptocurrency trading platforms, where they believed they were making profitable investments. The fraudsters even showed fabricated transaction records to make it seem like the investments were yielding returns.

However, when the victims tried to withdraw their funds, they quickly discovered they had been scammed.

Police revealed that the syndicate divided the operation into different roles, with specific members responsible for managing online relationships, technical support, and accounting.

The recruits, many of them university graduates, were trained on how to build trust with the victims, particularly by discussing investment opportunities.

Some of the fraudsters earned tens of thousands of Hong Kong dollars per month, with top members of the syndicate making over HK$100,000.

The scam had been operating since October 2023, raking in a total of HK$360 million from victims. Authorities are still investigating and expect more arrests in connection to the scam.

The Rise of Crypto Romance Scams

Romance scams, sometimes referred to as “pig butchering” scams, have become increasingly prevalent with the rise of cryptocurrencies. These scams involve criminals building fake romantic relationships with victims online, eventually persuading them to invest in fake crypto schemes.

In this Hong Kong case, the use of AI and deepfake technology added a new layer of sophistication to the scam, making it harder for victims to spot the deception.

Over the past few years, international law enforcement agencies, including the Federal Bureau of Investigation (FBI) and the Federal Trade Commission, have warned of the growing threat of crypto romance scams.

A study led by University of Texas finance professor John Griffin revealed that from January 2020 to February 2024, romance scams caused over $75 billion in losses, with many of the scams originating from Southeast Asia.

Scammers, as seen in this Hong Kong case, are getting bolder and more tech-savvy, using AI to create realistic online personas. Influential figures such as Michael Saylor have warned about deepfake scams, even as the MicroStrategy Chairman has been a target of the scam.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.