American businessman loses $74m in fraud crackdown, with 39 arrested

An American businessman lost HK$74 million to a fake online gold trading scam, prompting Yau Tsim Mong  police to arrest 39 suspects in an operation that uncovered 36 fraud cases totaling HK$152 million in losses.

Hong Kong police have cracked down on a wave of scams, arresting 39 suspects in a 10-day operation from September 8 to 17. 

The operation uncovered 36 fraud and money laundering cases that cost victims HK$152 million, with the largest single loss suffered by an American businessman who was deceived into depositing HK$74 million into a fake online gold trading platform. 

After realizing he could not recover his funds, he traveled to Hong Kong to report the scam, prompting police to arrest a 36-year-old local man linked to one of the mule accounts used to launder the money.

Investigations continue to identify other suspects and trace the stolen funds.

The 39 suspects, 27 men and 12 women aged 20 to 61, include construction workers, drivers, salespeople, and unemployed individuals, many of whom acted as holders of mule accounts to facilitate illicit transactions.

The scams ranged from investment fraud and job scams to online shopping tricks and impersonation schemes.

Another notable case involved a 24-year-old mainland woman who was tricked into buying HK$200,000 worth of gold bars in Tsim Sha Tsui after a fraudster, posing as a mainland official, falsely accused her of economic crimes. 

She handed the bars to a 47-year-old Taiwanese woman, who was arrested and charged with obtaining property by deception after police reviewed extensive security camera footage. 

This emerging tactic of demanding physical gold has raised concerns, prompting police to warn the public about evolving scam methods.

Authorities also highlighted the dangers of lending bank accounts, citing a case where a defendant’s sentence was increased by 30 percent for allowing scammers to process HK$3.9 million through his account. 

Police urged residents to verify suspicious communications using the CyberDefender website, Scameter, the Scameter+ app, or hotline to avoid falling victim to such schemes.