Hong Kong police bust fake romance crypto scam that resulted in $46 million heist

The Hong Kong Police Force (HKPF) has dismantled a massive cross-border fraud operation that used deep fake technology to scam men into bogus cryptocurrency investments.

The scam targeted men through fake online romances, and victims were defrauded out of approximately $46 million.

27 Arrested in a raid on the Fraud Centre

Local media reports revealed that police identified a group operating from a fraud center located in an industrial unit in Hung Hom between August and September 2024. On October 9, authorities raided the 4,000-square-foot facility and arrested 27 people, including 21 men. and 6 women between 21 and 34 years old.

Law enforcement officers also seized computers, cell phones, luxury watches and approximately $25,750 in suspected proceeds of crime from the headquarters of the operation. The suspects were arrested on charges of conspiracy to defraud and possession of offensive weapons.

The fraudulent operation focused on the use of “romance scams”, where perpetrators posed as attractive women to lure victims into relationships through online platforms. Using advanced fake technology powered by artificial intelligence to create realistic interactions, scammers posed as desirable women and conducted video chats with their targets.

Once trust was established, victims were encouraged to invest in virtual cryptocurrencies through what appeared to be a legitimate investment platform.

In reality, the platform was fake, created by the criminal organization with the assistance of local university graduates hired as digital media and technology experts. These graduates, along with other fraudsters and IT specialists abroad, helped create the sophisticated infrastructure that enabled the deception.

Roman AI scam operation

Police described the fraud center as meticulously organized and unusually large, with the group even producing training manuals in Chinese and English. These manuals instructed tricksters on how to construct fake romances and manipulate their targets to extract money.

Fang Chi-kin, head of the Southern New Territories regional crime unit, explained that after initial contact with victims on social media, fraudsters used artificial intelligence to send artificially generated photos depicting attractive people . Their fake characters were carefully crafted in terms of appearance, personality, occupation and education.

Superintendent Iu Wing-kan added that when victims requested video calls, deep fake technology was used to alter their appearances and voices, causing victims to completely trust them. According to police, most of those arrested are men, many of them from mainland China, Taiwan, India and Singapore.

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