Hong Kong, Wednesday, October 16, 2024-Hong Kong police have dismantled a massive $46 million crypto romance scam that spanned across Asia, targeting men in multiple countries through advanced deepfake technology.
The fraud syndicate behind the operation was running a sophisticated scam center in Hong Kong and used AI-generated images and videos to lure victims into fake romantic relationships, ultimately convincing them to invest in fraudulent cryptocurrency platforms.
During a raid on a Hung Hom industrial building, police arrested 27 individuals, many of whom were university graduates specializing in digital media. The scammers created convincing online profiles of attractive women and used deepfake technology to manipulate photos and videos to initiate relationships. The victims, mostly from Hong Kong, mainland China, Taiwan, India, and Singapore, were tricked into believing they were involved in genuine relationships and encouraged to invest in what appeared to be lucrative crypto ventures.
To maintain the deception, the fraudsters used fabricated transaction records showing false profits, leading victims to invest even more. Training manuals in English and Chinese were provided to group members, detailing how to cultivate trust with their targets. In some cases, scammers earned over HK$100,000 (approximately $12,800) per month.
The scam syndicate was meticulously organized, with distinct departments handling technical support, operations, and accounting. Teams were also created to target English-speaking and Mandarin-speaking victims. Performance boards tracked each team’s success, with rewards for defrauding the most victims. One individual reportedly earned $266,000 in a single month.
The syndicate defrauded victims out of HK$360 million (around $46 million) over the past year. The arrested individuals face charges of conspiracy to defraud and possession of offensive weapons. This bust highlights the rise of crypto romance scams, as similar schemes are on the rise globally.
