The Hong Kong Police announced the arrest of 27 people suspected in a deepfake and cryptocurrency scam, defrauding victims of more than $46 million.

Scammers' Methods

The scammers used AI deepfakes to create the illusion of romantic relationships to lure victims into a cryptocurrency investment scam. The victims were mainly men from mainland China, Taiwan, India, and Singapore. The suspects hired local university graduates specializing in digital media and overseas IT professionals to develop a fake investment platform.

Details of Police Operation

The operation to dismantle the scam began on October 9, with police seizing several computers, luxury watches, and over 100 mobile phones belonging to the alleged gang members. The accused range in age from 21 to 34, with 21 being men. They have been charged with conspiracy to defraud and possession of offensive weapons.

Consequences and Warnings

Earlier in February, deepfake scammers tricked an employee at a finance firm in Hong Kong into releasing over $25 million. Hong Kong police warn the public to be vigilant against new types of fraud. According to Chainalysis, crypto scammers stole $4.6 billion in 2023, with cases doubling year-on-year since 2020.

The bust of this fraudulent center highlights the increasing threat of deepfake technologies used for deception. Hong Kong police continue to advise the public to stay cautious of emerging scam tactics.