The post Deepfake Crypto Scam: Hong Kong Police Arrest 27 in $46M Fraud Operation appeared first on Coinpedia Fintech News
An international fraud gang has been unmasked for conning people through fake investments in virtual currencies.
Hong Kong police have recently disbanded a transnational $46 million deepfake crypto romance fraud operation. Owned by a syndicate operating in several countries, the report now details how the criminals employed Artificial Intelligence in generating fake identities to lure the victims into investing in bogus cryptocurrencies.
The Syndicate’s Operation
The scam affected men of all ages in Hong Kong, China, Taiwan, India and Singapore. Scam artists applied deepfake tactics and forged genuine identities through the use of AI pictures, and faked videos. Having gained the trust of the victims, they tricked the victims into investing in fake cryptocurrency platforms earning them huge profits.
The Illusion of Returns
The victims were shown forged transaction slips showing gains that they never made. The scammers repaid their victims using the fake returns for longer periods which made the victims develop more confidence and continue investing. The proceeds were channelled through fake crypto trading companies meant to defraud the victims.
Arrests and Raid
27 people were arrested and detained in an industrial building, most of them young graduates in digital media. Some of them were affiliated with triad groups. They all had various functions besides being members of the syndicate: some provided technical assistance others were involved in scam-related activities.
Worldwide Effect and Outcome
It was a cross-national syndicate whereby the victims were from different countries. This elaborate operation included incriminating international cooperation to develop fake cryptocurrency sites and the police also found manuals showing how the scammers planned and rehearsed their schemes.
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A Growing Threat: Crypto Romance Scams
This case is a perfect illustration of how cryptocurrency-based fraudsters are increasingly using deep fake tactics to create and prey on emotional and financial insecurities. While taking to cryptocurrencies, people are being informed that similar scams are likely to persist in the future.
The 27 arrested people were later charged with crimes that included conspiracy to defraud as well as being found with offensive weapons by the Hong Kong police force. This probe is now continuing as government agencies work to establish the movement of funds.
