Hong Kong authorities have intensified their crackdown on cryptocurrency fraudsters targeting meme coin investors, resulting in the arrest of 27 suspects connected to a HK$360 million ($46.3 million) romance crypto scam. The operation, codenamed "Secret Word," dismantled a sophisticated scheme that had been operating for approximately one year. Authorities seized HK$200,000 ($25,742) in cash along with various luxury items during the arrests.
The fraud operation specifically targeted victims from Hong Kong, India, Singapore, and Malaysia. Perpetrators established romantic relationships online before manipulating victims into transferring funds to fraudulent cryptocurrency investment platforms. This case represents one of several major cryptocurrency-related crimes recently uncovered in the territory.
In a parallel development, Hong Kong experienced its first multi-person video conference deepfake scam, where fraudsters created digital replicas of corporate executives. This sophisticated attack resulted in HK$200 million ($25.6 million) being transferred across 15 separate transactions before the deception was discovered approximately one week later.
The Securities and Futures Commission (SFC) has responded by issuing warnings against fraudulent platforms like MEXC Global and placing suspicious entities on an alert list. The SFC has specifically warned about phishing links that start with "mexc" and end with random alphabets to trick investors. These regulatory actions coincide with a broader government initiative requiring cryptocurrency exchanges to apply for proper licensing or cease operations entirely.
Hong Kong Monetary Authority (HKMA) is utilizing technology in its counter-fraud efforts through the deployment of AI systems and the "Scameter+" application, which has recorded over 2.13 million searches and generated 360,000 fraud alerts. The application is scheduled for improvement with additional features and public reporting mechanisms. Investment fraud cases have surged by 1.2-fold in 2023, making these technological interventions increasingly critical.
The scale of fraud in Hong Kong remains concerning, representing up to 46% of all reported crime. With over 32,000 fraud cases reported in the year leading to September, authorities are emphasizing international cooperation to combat these cross-border schemes.
Collaborative efforts with overseas counterparts have become essential as cryptocurrency scams continue to target victims across multiple countries. Public education campaigns urge investors to conduct thorough due diligence and verify the legitimacy of virtual asset trading platforms, particularly when encountering "too-good-to-be-true" investment opportunities on social media.
