In a major cross-border operation, Hong Kong police have dismantled a sophisticated crypto romance scam that defrauded victims out of $46 million.
This operation, which targeted men across multiple countries, used advanced deepfake technology and was orchestrated by a fraud syndicate that ran a well-organized, large-scale scam center in Hong Kong.
The scam lured victims into fake romantic relationships, ultimately leading them to invest in bogus cryptocurrency platforms.
Crypto Romance Scam: Hong Kong Police Bust $46M Crime Empire
According to a local source, the syndicate’s operations were uncovered in a raid on a Hung Hom industrial building, involving 27 individuals, many of whom were recent university graduates specializing in digital media.
They used deepfake technology to create highly convincing personas that appealed to their victims, like fake online profiles featuring AI-generated photos of attractive women.
These personas were used to initiate and foster romantic relationships with unsuspecting men across Hong Kong, mainland China, Taiwan, India, and Singapore.
The syndicate utilized deepfake technology not only in photographs but also during video calls. They manipulated both the appearances and voices of scammers to match the idealized images that victims believed to be their romantic partners.
Over time, the victims were coaxed into making significant investments in fake cryptocurrency platforms, believing they were participating in lucrative financial opportunities.
The fraudsters reinforced this deception by showing the victims fabricated transaction records, which falsely indicated that their investments were yielding high returns.
This gave the victims a sense of security and trust, prompting them to invest even more.
The criminal organization went to great lengths to maintain the illusion of authenticity.
Training manuals in both English and Chinese were distributed among the group’s members, providing detailed instructions on how to cultivate trust with victims.
Conversations often extend beyond finances, with scammers discussing future plans and shared dreams, which deepens the emotional investment of their targets.
According to the police, some of the fraudsters were able to earn over HK$100,000 (approximately $12,800) per month through this scheme.
A Rise in Crypto Romance Scams
The Hong Kong Police Force described the scam center as meticulously organized, with clearly defined roles for each participant.
The syndicate’s operations were split into multiple departments, including technical support, scam operations, and accounting.
Some of the arrested individuals were responsible for managing victims based on language, with teams dedicated to either English-speaking or Mandarin-speaking victims.
The fraudsters created performance boards to track the success of each team, with rewards going to those who successfully defrauded the most victims.
One individual reportedly earned $266,000 in a single month from these fraudulent activities.
The scam’s financial scale was staggering. Over a year, the syndicate defrauded victims out of more than HK$360 million (approximately $46 million).
Victims were primarily men, many of whom believed they were in romantic relationships with intelligent, successful, and attractive women.
By the time they realized the truth, their investments were long gone, siphoned off through fake crypto platforms that existed solely to deceive them.
In addition to charges of conspiracy to defraud, the 27 individuals arrested were also charged with possession of offensive weapons.
Notably, this crypto romance scam is rising more than ever. Earlier this year, a report from Chainanalysis showed that crypto bros are falling for romance scams at an alarming rate, with a victim reporting over $450K lost to it.
In light of this, the U.S. Federal Trade Commission (FTC) has issued a warning about the rise of “pig butchering” scams, a type of crypto romance scam.
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