. Arrested in Hong Kong for AI Deepfake Crypto R0mance Scams

AI Deepfake Crypto Romance Scams Lead to 27 Arrests in Hong Kong

Hong Kong Police Dismantle Deepfake Romance Scam

Hong Kong police have taken down a deepfake romance scam that swindled individuals out of nearly $46 million through fake cryptocurrency investments.

Multinational Scam Targeting Multiple Regions

According to a report by local news outlet DotDotNews, law enforcement targeted a multinational cryptocurrency romance scam affecting victims in Hong Kong, Singapore, mainland China, and other regions. The scam was orchestrated by a fraud syndicate that used deepfakes to deceive their victims.

27 Suspects Arrested, Including Triad Members

Authorities arrested 27 individuals, including university graduates and suspected members of the Sun Yee On triad. These suspects were allegedly involved in running the operation by creating fake trading platforms that tricked victims into investing in fraudulent cryptocurrency schemes.

How ‘Pig Butchering’ Scams Work

Romance scams, also known as “pig butchering” scams, involve scammers posing as romantic interests to gain victims’ trust. The scammers eventually convince their targets to invest in fake cryptocurrency opportunities with promises of high returns, only to disappear with the money. Reports from February revealed that crypto transactions tied to such scams are now 85 times higher than in 2020, with revenues doubling from 2022 to 2023.

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Hong Kong

AI Deepfakes Used to Manipulate Victims

In this case, the Hong Kong scammers used AI-generated images of women to lure men into online romantic relationships. Victims were convinced to invest in what they believed were legitimate cryptocurrency platforms but later discovered they couldn’t withdraw their funds.

Deepfake Technology Deceived Even in Video Calls

Senior Superintendent Fang Chi-kin, head of the New Territories South regional crime unit, explained that victims were tricked even during video calls. Deepfake technology was used to alter the scammers’ faces and voices, making them appear as women.

Fake Platforms Showed False Profits

Victims were further persuaded to invest in cryptocurrency via the fake platforms and were shown falsified transaction records showing supposed profits. Previous reports mentioned that some scams even involved custom-developed fake investment apps. “They discussed future plans with the victims, creating a false sense of security to encourage more investments,” said Fang.

Sophisticated Scam Operations

The syndicate had a well-organized structure, with roles divided across scam operations, technical support, and accounting. Recruits, often university graduates, were trained to handle either English-speaking or Mandarin-speaking victims. They were given manuals on how to build trust, particularly when it came to investments.

High Payouts for Syndicate Members

Each participant in the syndicate reportedly earned tens of thousands of Hong Kong dollars per month, with some making over 100,000 HKD—about $12,900. Police investigations are ongoing, and further arrests could follow. The scammers had been operating since October 2023 and managed to defraud victims of about HK$360 million, roughly $46 million.

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