Hong Kong police arrest 27 in $46M deepfake crypto scam

Hong Kong Police have dismantled a large-scale fraud operation that used deepfake technology to con men into fake cryptocurrency investments, resulting in the theft of approximately $46 million.

According to local reports, the scam involved romance fraud, where perpetrators created phony relationships through online platforms, targeting men with convincing deepfake videos and interactions.

On October 9, law enforcement raided a 4,000-square-foot fraud center in Hung Hom, arresting 27 individuals—21 men and 6 women—between the ages of 21 and 34.

The raid led to the seizure of computers, mobile phones, luxury watches, and about $25,750 in suspected criminal proceeds.

The arrested individuals were charged with conspiracy to defraud and possession of offensive weapons.

The fraudulent scheme revolved around creating fake online personas, with the suspects posing as attractive women to build trust with victims.

After establishing relationships, the targets were lured into investing in cryptocurrencies via a fake investment platform.

According to police, the fake platform was constructed with the help of local university graduates who were recruited as digital media and technology experts.

Fang Chi-kin, head of the New Territories South crime unit, noted that the fraudsters used AI-generated photos to enhance the deception, making their fake personas appear more authentic in terms of appearance, personality, and background.

When victims requested video chats, deepfake technology was used to alter the scammers’ voices and appearances, creating an illusion of trust.

The operation was meticulously organized, with training manuals in Chinese and English that instructed scammers on how to manipulate their targets effectively.

Many of those arrested are reportedly from mainland China, Taiwan, India, and Singapore.