30s Summary

Hong Kong authorities have dismantled a $46 million crypto scam operation where 27 individuals used deepfakes of women to trick people into online romances and lure them into investing in cryptocurrency. Based in Hung Hom, the scam targeted men mainly from mainland China, Taiwan, India, and Singapore. The culprits hired local university graduates and foreign IT professionals to create a fake crypto investment platform. Authorities confiscated computers, watches, and over 100 mobile phones. The culprits, aged 21 to 34 years and mostly men, are facing charges of fraud and possessing illegal weapons. Crypto scams like these have cost victims $4.6 billion in 2023.

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Hong Kong authorities have put a stop to a fraudulent operation where 27 people were creating artificial, computer-generated images of women to trick people into online romances and lure them into a crypto investment scam. The bad guys managed to swindle their victims out of over $46 million.

They used these so-called deepfakes to make victims believe they were in a romantic relationship with a real person who then encouraged them to invest in cryptocurrency, according to what the Hong Kong Police shared with local media on October 14.

They stole a whopping $46.3 million in total, or 360 million Hong Kong dollars. This sneaky scam was run from a large industrial building in the Hong Kong area of Hung Hom, targeting men mainly from mainland China, Taiwan, India, and Singapore.

To pull off this elaborate scam, they hired local university graduates who specialized in digital media and even roped in foreign IT professionals to design a bogus crypto investment platform. The ringleaders also prepared guides for those who were running these deepfake scams.

Local authorities made their move to shut it down on October 9, confiscating computers, fancy watches, and over 100 mobile phones linked to the scam operation. The suspects, aged between 21 to 34 years and primarily men, are now facing charges of arranging a fraud and possessing illegal weapons.

Previous scams have tricked employees at global financial firms in Hong Kong into transferring more than $25 million of company funds by mimicking company execs in online video meetings using stolen footage. These scammers are getting creative with their tactics, so people need to stay alert.

Data reveals that victims lost $4.6 billion to crypto scammers in 2023, with the amount stolen in romance or “pig butchering” scams now doubling annually since 2020.

Source: Cointelegraph