The Hong Kong police have uncovered a major international fraud operation using deepfake technology to extort money from men through fake online romances. The victims reportedly lost around $46 million.

27 Arrested in Raid

Local media reports revealed that between August and September 2024, police identified a group operating from a fraud center located in a Hung Hom industrial unit. On October 9, authorities raided the 4,000-square-foot facility, arresting 27 individuals, including 21 men and 6 women aged between 21 and 34. Law enforcement officers also seized computers, mobile phones, luxury watches, and approximately $25,750 in suspected crime proceeds. The suspects were apprehended on charges of conspiracy to defraud and possession of offensive weapons.

Deepfake Scam Operation

The fraudulent operation centered around the use of 'romance scams,' where perpetrators posed as attractive women to establish relationships with victims via online platforms. Using advanced deepfake technology, they created realistic interactions to gain the trust of their targets. Once trust was established, the victims were encouraged to invest in virtual cryptocurrencies through what seemed to be a legitimate investment platform.

Fraudulent Scheme Details

The group was meticulously organized and unusually large, with training manuals in Chinese and English instructing the fraudsters on building fake romances and manipulating targets to extract money. Fang Chi-kin, head of the New Territories South regional crime unit, explained that after initial contact on social media, imposters used AI to send artificially generated photos of attractive individuals. Superintendent Iu Wing-kan added that deepfake technology modified appearances and voices when victims requested video calls, fully convincing them of the authenticity of the interlocutor.

The exposure of this deepfake-based scam represents a significant step in combating cybercrime, highlighting the need for vigilance and caution in the online sphere.