Hong Kong Police Uncover Deepfake Romance Crypto Scam Resulting in $46 Million Theft

The Hong Kong Police Force (HKPF) has uncovered a massive cross-border fraud operation that used fake technology to trick people into making fake cryptocurrency investments.

The scam targeted men through fake online romance, and victims reportedly received about $46 million in cash.

27 Arrested in Fraud Center Raid

Local media reports revealed that police identified a group operating from a fraud center located in a Hung Hom industrial unit between August and September 2024. On October 9, authorities raided the 4,000 square foot facility, arresting 27 people, including 21 men and 6 women aged between 21 and 34 years.

Law enforcement officers also seized computers, cellphones, luxury watches and approximately $25,750 in suspected criminal proceeds from the operation’s headquarters. The suspects were arrested on charges of conspiracy to defraud and possession of offensive weapons.

These fraud operations center on the use of “romance scams,” where perpetrators impersonate attractive women to lure victims into relationships through online platforms. Using advanced fake technology powered by artificial intelligence to create realistic interactions, fraudsters impersonate desired women and video chat with their targets.

Once trust is established, victims are encouraged to invest in virtual cryptocurrency through seemingly legitimate investment platforms.

In reality, the platform was fake, created by a criminal organization with the help of local university graduates recruited as digital media and technology experts. These graduates, along with overseas fraudsters and other IT specialists, helped create the sophisticated infrastructure that enabled the fraud to occur.

AI Romance Deception Operation

Police described the fraud center as carefully organized and very large, with the group even producing training manuals in Mandarin and English. This guide instructs scammers on how to construct a fake romance and manipulate their targets to make money.

Fang Chi-kin, head of the Southern New Territories regional crime unit, explained that after initial contact with victims on social media, fraudsters use AI to send doctored photos depicting attractive individuals. Their fake personas are carefully crafted in terms of appearance, personality, occupation, and education.

Inspector Iu Wing-kan added that when the victim requested a video call, fake technology was used to change their appearance and voice, thereby making the victim trust them completely. According to police, most of the people arrested were men, many from mainland China, Taiwan, India and Singapore.