Hong Kong authorities have launched a major crackdown on fraudulent activities, resulting in the arrest of 1,121 people allegedly involved in a massive online scam ring.
The operation, dubbed "AttackPlan," targeted various forms of deception and technology-based crimes, including employment, shopping, and investment scams.
According to the South China Morning Post, the suspects, comprising 768 men and 353 women aged between 14 and 89, were linked to a staggering 952 cases of fraud, amounting to approximately HK$2.2 billion (US$280 million) in losses.
Phone Scam Syndicate Nabbed in Hong Kong
Acting Senior Superintendent Chow Cheung-yau of the police's financial intelligence and investigation bureau revealed that the operation also dismantled a cross-border syndicate believed to have laundered over HK$230 million in suspected crime proceeds.
This syndicate, operating between Hong Kong and mainland China, employed sophisticated tactics, including recruiting mainlanders to establish bank accounts in Hong Kong to facilitate the laundering of illicit funds.
The modus operandi of the syndicate involved setting up "stooge accounts" in various banks across the city to collect scam proceeds. These funds were then laundered through the purchase of cryptocurrency at local over-the-counter outlets, effectively concealing the flow of illegal cash. Chow noted that the investigation uncovered the utilization of at least 45 stooge accounts to handle HK$239 million between October and February.
Pedestrians walk pass an advertisement display of Xiaomi's "Redmi Note 5"mobile phone in Hong Kong on June 22, 2018. - Chinese smartphone maker Xiaomi kicked off its initial public offering on June 21, but the firm is likely to pull in about 6.1 billion USD, far less than originally expected, with investors having mixed views about its main business.
Surge in Online Scams
In light of these developments, Hong Kong authorities emphasized the importance of collaboration with mainland China and other international partners to combat cross-border money laundering effectively.
Chief Inspector Tang Kwok-hin of the force's cybersecurity and technology crime bureau urged the public to utilize the "Scameter" fraud detection app to identify suspicious phone numbers and websites, underscoring the need for proactive measures to thwart fraudulent activities.
The recent bust comes amidst a concerning trend of increasing fraud cases in Hong Kong. According to statistics from a previous South China Morning Post report, there was a 15% surge in scams in January, with online scams accounting for nearly 68% of overall fraud cases. Furthermore, overall crime rates rose by 21% during the same period, with thefts and "naked-chat blackmail" cases witnessing substantial increases.
In 2021 alone, Hong Kong police recorded 39,824 fraud cases, with online scams constituting approximately 70% of the total cases and resulting in losses exceeding HK$5.3 billion. Among these, online shopping scams were the most prevalent, with 8,950 reported cases.
Earlier this year, we reported that a multinational company headquartered in Hong Kong fell victim to a deepfake scam, resulting in a staggering loss of HK$200 million (US$25.6 million).
The elaborate scheme involved scammers using advanced deepfake technology to convincingly impersonate key company figures during a video conference call, eventually tricking an employee into making significant unauthorized transfers.
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