Police announced on Monday the arrest of 27 suspects, including 21 men and six women, in the Hung Hom District.
The suspects, aged between 21 and 34, were mostly well-educated, with many holding degrees in digital media and technology. According to police, many of them were recruited by the gang after attending local universities.
The scammers allegedly worked with IT experts abroad to create a fraudulent cryptocurrency platform, pressuring victims into making investments, CNN reported.
The victims, who were from Hong Kong, mainland China, Taiwan, Singapore, India, and other Asian economies, were targeted through social media.
The gang used AI-generated deepfake videos to pose as attractive women and lure victims.
Fang Chi Kin, head of the New Territories South regional crime unit, explained that the scammers fabricated entire personas to build intimacy with the victims. They even conducted fake video calls using deepfake technology, making the victims believe they were in a romantic relationship.
“They got in touch with the victims on social media, and sent them photos generated by AI, shaping a character who had a very appealing appearance, personality, career and academic qualifications,” he told The Star.
“Men from different regions were among the victims… Although the victims had video calls [with the character]they falsely believed that they were dating a high-quality person.”
A still image of a woman in a deepfake video call recreated by the Hong Kong police to serve their investigation. Police said it was actually a man who made the original video call. |
Once trust was established, the fraudsters convinced their victims to invest in a fake cryptocurrency exchange, providing fake profit transfer records to entice further investment. The scammers continued to paint promising future scenarios, including travel plans, to keep the victims invested.
Each scammer could earn up to HKD10,000 (US$1,300) per month, with some making as much as HKD100,000. The gang swindled a total of HKD360 million from their victims.
On their official Facebook page, Hong Kong police also released images of a “handbook” used by the gang to manipulate victims’ emotions and trust. The guide outlined strategies such as learning about the victim’s worldview to design the “ideal partner,” creating personal or business crises to build trust, and selling a “beautiful future” to push victims into investing in the fake cryptocurrency platform.
The scam, which lasted about a year, was exposed after police received information in August.
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