Hong Kong Police Uncover $46 Million Crypto Scam Using AI Deepfakes

Hong Kong police recently clamped down on a suspected scam operation and arrested 27 people.The suspects allegedly used artificial intelligence deepfakes to carry out a crypto romance scam.

The police revealed that the scammers defrauded people of more than $46 million.

27 Arrested in Hong Kong AI Deepfake Scam Targeting Victims Across Asia

Hong Kong authorities cracked down on a purported scam center and arrested 27 suspects allegedly involved in a crypto romance investment scam. The scam was an international operation, and the scammer operated from a 4,000-square-foot building in Hung Hom, a Hong Kong neighborhood.

According to an October 14 local media report, Hong Kong said the scammers used AI deepfakes to create fake identities online. They pretended to be women, built fake romantic relationships with their victims, and tricked them into investing in sham crypto schemes.

The police said the victims lost $46.3 million, about 360 million Hong Kong dollars. Most of the victims were men from mainland China, Taiwan, India, and Singapore.

The scammers had a sophisticated setup. They hired local university graduates with digital media degrees to help them create fake content.

Additionally, they paid IT professionals from overseas to build a fake crypto investment platform. The scammers used this platform to trick victims into thinking their investments were real.

The scam leaders reportedly created training manuals that they would use to teach others how to run the AI deepfake scams. They were well-organized and prepared.

On October 9, the police launched a raid to break up the operation. During the raid, the police seized essential items such as computers, luxury watches, and over 100 mobile phones.

These belonged to members of the scam group and were part of the illegal operation. The 27 people arrested were between the ages of 21 and 34, 21 of whom were men.

Therefore, the police have charged these individuals with serious crimes, including conspiracy to defraud" and possession of offensive weapons."

Hong Kong Police Warn of Deepfake Technology Used in Corporate Scams

In February, deepfake scammers pulled off another big trick. This time, they targeted a multinational finance firm in Hong Kong. They used deepfake technology to pose as several company executives.

During an online video meeting, the scammers convinced an employee that they were real executives. The employee believed them and was tricked into sending over $25 million of company funds.

The deepfake videos were so convincing that the employee didn't realize it was a scam. This shows how powerful and dangerous deepfake technology can be for fraud.

Therefore, the police believe the scammers used old company executives' video footage. They likely took this footage and used it to create fake, realistic videos. These videos, called deepfakes, make it seem like the real executives were talking during the meeting.

Hong Kong Police's Baron Chan explained this to the public. He warned that scammers are using these new tricks.

According to him, the police want to alert the public to these new deception tactics. His message warns people to be careful with online meetings and suspicious activities.

Meanwhile, in 2023, crypto scammers defrauded victims of a total of $4.6 billion, according to data from Chainalysis. Since 202, the amount of money stolen through romance scams, known as Pig butchering" schemes, has doubled yearly.

The post Hong Kong Police Uncover $46 Million Crypto Scam Using AI Deepfakes appeared first on Techreport.