Hong Kong police recently uncovered a sophisticated scam operation that used AI deepfakes to defraud victims of over $46.3 million through crypto romance schemes. The elaborate cross-border fraud, which preyed on vulnerable victims across mainland China, Taiwan, India, and Singapore, was orchestrated from a 4,000-square-foot center in Hung Hom, Hong Kong.
How The Scam Worked
The perpetrators lured victims into believing they were developing romantic relationships with real women, leveraging AI-generated videos and profiles to build trust. The victims, thinking they were helping their newfound partners invest in cryptocurrency, were guided toward fake crypto investment platforms created by the scam group.
To ensure credibility, the criminals hired local university graduates with digital media expertise and paid overseas IT specialists to develop the fraudulent platforms. Authorities revealed that the group even created training manuals to instruct scammers on how to manipulate victims using deepfake technology.
Police Raid and Arrests
The Hong Kong Police Force launched the operation on October 9, arresting 27 people aged between 21 and 34. Most of those arrested were men, and police also seized luxury watches, 100+ mobile phones, and computers during the raid. Those detained are facing charges of “conspiracy to defraud” and “possession of offensive weapons.”
This crackdown highlights the increasing sophistication of cybercrime operations that use artificial intelligence to exploit emotions for financial gain.
A Growing Trend in AI-Driven Scams
This is not the first time Hong Kong has been targeted by deepfake scams. In February 2024, scammers impersonated company executives through AI-generated video meetings, tricking an employee into transferring $25 million from a multinational finance firm.
According to Baron Chan, a spokesperson for Hong Kong police, criminals are increasingly using stolen footage to create convincing deepfake videos. He emphasized the need for the public to stay vigilant as deception tactics evolve.
Romance-based crypto scams—often called “pig butchering” scams—have become alarmingly common. Chainalysis reports that in 2023 alone, crypto scammers stole a staggering $4.6 billion, with romance scams doubling every year since 2020.
Also Read: Hong Kong Set to License 10 New Crypto Exchanges – A Major Boost For Asia’s Digital Asset Hub
Hong Kong authorities are urging the public to exercise caution in online relationships and investment opportunities, especially when dealing with unfamiliar platforms or individuals.
With AI technology becoming more accessible, law enforcement faces increasing challenges in combating these high-tech scams. The latest bust in Hong Kong serves as a stark reminder that fraudulent schemes are becoming more advanced and that even tech-savvy investors need to stay on guard against emotional manipulation and too-good-to-be-true offers.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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