Police bust loan scam using cryptocurrency deposits, six arrested

Police have received 13 reports since mid-February involving low-interest loan scams in which fraudsters used cryptocurrency to obtain security deposits, marking the first time such a method has been identified in Hong Kong.

Six mainland Chinese individuals have been arrested on suspicion of conspiracy to defraud, with police saying that the losses among victims ranged from HK$50,000 to HK$1.3 million, with total losses reaching about HK$5 million.

According to a police spokesperson from the Central District, the arrestees, three women and three men, aged between 29 and 63, operated with a clear division of roles.

Core members of the group were linked to triad societies and were responsible for recruiting others to set up shell companies, fake consulting firms and stooge bank accounts.

Police said the operation successfully disrupted the group’s activities and a key source of income, adding that searches and further arrests are ongoing.

Investigations revealed that since November 2025, scammers posing as bank staff had been promoting low-interest loans through cold calls. Victims were instructed to visit a fake office in Central to sign contracts in person and were asked to pay security deposits as proof of assets.

The syndicate rented office space under the names of shell companies and set up interiors designed to resemble legitimate consulting firms. Members posed as professionals, using fake company name cards, banknote counting machines and blank documents. Victims were asked to sign fraudulent loan agreements to reinforce the deception.

After paying the deposits and failing to receive the promised loans, victims returned to find the office vacated and subsequently reported the cases to police.

Authorities identified three main methods used to collect the deposits. The first involved cash payments made in person, with one victim losing as much as HK$1.3 million. The second involved transfers to stooge bank accounts.

In three cases where victims questioned the need for a deposit, scammers attempted to reassure them by issuing promissory notes, which later proved to be worthless.

The third method, described by police as unprecedented in local loan scams, involved the use of cryptocurrency, particularly targeting elderly individuals and those unfamiliar with digital finance.

Victims were tricked into opening cryptocurrency wallets and handing over their login credentials, after being told the wallets were required to demonstrate proof of assets. They later discovered that the funds had been transferred out.

Police said the 13 victims came from diverse backgrounds, including unemployed individuals, businesspeople and company owners, with some holding college or master’s degrees. This suggests the syndicate exploited victims’ urgent need for working capital and their desire for low-interest loans.

Police urged the public to remain vigilant as scam tactics continue to evolve, stressing that legitimate banks and financial institutions do not require security deposits for loan applications. Members of the public are advised to verify the identity of callers claiming to represent financial institutions.

For assistance, the public can contact the police’s Anti-Scam Helpline 18222.