Hong Kong Police Bust Virtual Currency Scam Group Using Deepfake Technology to Deceive Investors, Involving Approximately HK$34 Million

BlockBeats News, January 7th, according to Phoenix News, the Hong Kong police recently broke up a cryptocurrency investment fraud group that used deepfake technology to deceive others through social media platforms, involving about 34 million yuan.

The Hong Kong police, based on intelligence, arrested 31 people aged between 20 and 34 in two buildings in Kowloon Bay last week. Some claimed to be students or unemployed individuals, all allegedly part of the same fraud group, and seized their pre-written "scripts."

The Hong Kong police stated that the group would recruit young people eager to "make quick money," train them to create fake personas on social platforms portraying attractive appearances and luxurious lifestyles, befriend individuals from overseas, including Taiwan and East Asia, and engage in scripted conversations. After learning about the other party's background, they would cater to their interests, develop online relationships, and even engage in video calls using deepfake technology to deceive them into investing in cryptocurrency. They would promise substantial returns, ask them to deposit funds into a fake platform, swiftly transfer the received cryptocurrency out, and then cut off contact with the victims.

The police mentioned that this fraud group had been operating for at least a year, with criminal gains exceeding 34 million yuan.

Acting Senior Superintendent Kong Hing-fai of the Hong Kong Commercial Crime Bureau stated, "They rented two adjacent buildings as fraud centers in Kowloon Bay to spread the risk and enhance confidentiality. Most importantly, we noticed that these two fraud centers operated around the clock in shifts to attract more victims. Please do not think that participating in some criminal group's activities is a minor offense. Even if you are only involved in online interactions with victims rather than directly handling cryptocurrency investment, it is still illegal."

The Hong Kong police reminded that conspiracy to defraud is a serious crime and, upon conviction, could lead to a maximum of fourteen years' imprisonment. As some victims are located overseas and the fraud platforms are not based in Hong Kong, collaboration with foreign law enforcement agencies will continue the investigation.

Reportedly, the mastermind of the fraud group, the head, and key members, totaling 5 individuals, have been charged with conspiracy to defraud and money laundering. They appeared in court at the Eastern District Court on Monday.