Hong Kong Police Bust $46M Deepfake Crypto Scam, 27 Arrested
Hong Kong police have dismantled what authorities describe as a deepfake cryptocurrency scam. To date, 27 suspects have been arrested over an alleged scheme that scams victims out of more than $46 million. Operating from a 4,000-square-foot industrial facility in Hung Hom, the scam was found to employ the use of advanced AI deepfake technology to build relationships with potential victims, feigning romance to eventually swindle them into illegitimate cryptocurrency investments.
How the AI-Powered Scam Worked
The scammers of the operation created the impression of being women using deepfake AI, creating the perception in targeted people’s minds that they were having romantic relations with them. These one-way, fake love affairs finally saw victims invest in sham cryptocurrency platforms framed by fraudsters. According to the Hong Kong Police Force, victims lost $46.3 m, or 360 million Hong Kong dollars.
A Targeted Assault: Victims Across Asia
While the scam was Hong Kong-based, its target victims were predominantly males from mainland China, Taiwan, India, and Singapore. It then hired local university graduates with digital media experience and used them to recruit IT professionals overseas to develop sham cryptocurrency investment platforms that looked just like real cryptocurrency investment websites as part of an overall investment opportunity.
Police Operation and Seizures
On October 9, police conducted a successful raid at the scam’s headquarters. They seized several assets, including luxury watches, computers, and more than 100 mobile phones connected to the operation. The 27 suspects, between ages 21 and 34, are facing “conspiracy to defraud” charges among others, including “possession of offensive weapons”. More investigations are still ongoing, with the police following other information lines.
Deepfake Technology: A Growing Concern
This is not the first deepfake scamming case in Hong Kong. Early this year, in February, some fraudsters stole more than $25 million using similar techniques; they impersonated company executives during an online video meeting. The increasing use of AI in scams presents a growing challenge for law enforcement agencies worldwide.
Public Warnings and Crypto Scam Statistics
Hong Kong police are urging the public to be vigilant amid rising AI-powered scams. Crypto scams globally accounted for losses amounting to $4.6 billion in 2023, according to Chainalysis data. Romance and “pig butchering” scams have seen significant growth, particularly doubling year-on-year since 2020.
