Police arrest 219 over fraud cases incurring HK$500m losses

Police announced Monday that they have arrested 219 people during a 10-day operation regarding 146 fraud cases, totaling over HK$500 million, defrauded from more than 500 victims.

Fraud cases have been on the rise in recent years, with various types of fraud accounting for about 45 percent of the overall crime on Hong Kong Island.

The Regional Crime Unit of Hong Kong Island mounted a large-scale anti-fraud and anti-money laundering operation from January 8 to 18, targeting the holders of stooge accounts, taking the initiative, and dispatching officers to arrest buyers who bought stooge accounts online. 

A total of 157 men and 62 people, who were primarily housewives, fitness instructors, insurance salesmen, and logistic workers, were arrested on suspicion of "obtaining property by deception," "conspiracy to defraud," "money laundering," and "inciting others to commit money laundering."

The arrested were mostly stooge account holders, and even though the police have repeatedly publicized through different channels that borrowing and selling accounts is illegal, they were arrested for knowingly committing the crime.

They were involved in 146 fraud cases, with as many as 558 victims, many of whom had high-level academic qualifications and high incomes, incurring a total loss of more than HK$500 million. 

The largest fraud case amounted to HK$19 million, which involved a software engineer who met the fraudsters online and was tricked into opening an investment account.

He had investment profits at first and continued to trust the words of the fraudster to transfer money to third-party accounts.

He only sought police help after the fraudsters refused to allow him to withdraw money from his accounts and later cut contact with him. The victim lost more than HK$19 million, which was transferred to the accounts of 42 different third-party accounts 81 times.