Hong Kong Police Arrest 27 in $46 Million Deepfake Crypto Romance Scam

Hong Kong police have dismantled a sophisticated deepfake romance scam that defrauded victims out of $46 million through fake cryptocurrency investments. The operation, which targeted individuals from Hong Kong, Singapore, mainland China, and other regions, was run by a multinational fraud syndicate utilizing advanced deepfake technology.

Authorities arrested 27 individuals, including university graduates and suspected members of the Sun Yee On triad, who were involved in setting up fake trading platforms designed to deceive victims into investing in non-existent cryptocurrency opportunities.

The Mechanics of the Scam

The scam, often referred to as a "pig butchering" scheme, involved scammers posing as romantic interests to gain the trust of unsuspecting men. Using AI-generated images of attractive women, they initiated online relationships and subsequently convinced victims to invest in what appeared to be legitimate cryptocurrency platforms. Victims later discovered they could not withdraw any funds.

Senior Superintendent Fang Chi-kin, head of the New Territories South regional crime unit, explained that even during video calls, deepfake technology was employed to alter the scammers’ appearances and voices to resemble those of the women they impersonated.

Victims were shown fake transaction records that falsely indicated profits, creating an illusion of success. "They even discussed future plans with the victims, fostering a false sense of happiness to encourage continued investments," Fang noted.

The syndicate operated with clearly defined roles, including scam operations, technical support, and accounting. Recruits, often university graduates, were trained to manage English and Mandarin-speaking victims, using manuals designed to help build trust, especially regarding investment opportunities.

According to reports, each fraudster could earn tens of thousands of Hong Kong dollars monthly, with some making over HK$100,000. Police continue their investigations and have not ruled out additional arrests.

The scammers had been active since October 2023, successfully defrauding victims of HK$360 million (approximately $46 million).

The Rise of Romance Scams

As cryptocurrency scams become increasingly sophisticated, romance scams are one of the more common tactics employed. The rise of AI technology has made it easier for scammers to execute convincing schemes.

Agencies such as the U.S. Federal Trade Commission and the Federal Bureau of Investigation have warned about the surge in romance scams, particularly those involving cryptocurrency. A study led by University of Texas finance professor John Griffin revealed that these scams resulted in over $75 billion in losses from January 2020 to February 2024, with many operations based in Southeast Asia. Recently, a U.S. citizen filed a lawsuit after losing $2.1 million in Bitcoin to a similar pig butchering scam orchestrated by a crime syndicate in the region.

In April, the Virtual Currency Unit within the Brooklyn District Attorney’s Office uncovered another scheme that targeted victims across the United States.