HK police warn of three-step trap as $60m lost to investment scams in one week

Nearly 90 cases of online investment fraud, totaling over HK$60 million in losses, were recorded in Hong Kong in a single week, police revealed, as they detailed a common playbook used by scammers to lure victims into their traps.

According to the police data, between March 27 and April 2, authorities recorded investment scams that ensnared multiple victims, including one senior citizen who lost over HK$5 million after trusting a fake investment expert.

The 64-year-old victim was befriended by a scammer on Facebook in October of last year. 

By January, the fraudster, posing as an investment guru, recommended a "high-return" gold investment scheme. 

Over the next three months, the victim, convinced by the scam, transferred more than HK$5 million to unknown personal bank accounts and only realized the scam when attempts to withdraw the funds were blocked.

On its "CyberDefender" page, police outlined the typical progression of these scams. 

The trap often begins with a fraudster befriending a victim on social media or messaging apps using various pretenses, such as posing as a neighbor. 

The scammer then invites the victim into a fraudulent investment group supposedly featuring "AI analysis" and "expert insights," where accomplices posing as fellow investors share fake screenshots of profits to build trust.

Finally, the victim is lured into making investments on a fake website or mobile app showing fabricated profit statements. When the victim attempts to cash out, the scammers invent excuses, demanding service fees or taxes to delay payment and accumulate further losses.

Police urge the public to use the "Scameter" tool on the CyberDefender website or mobile app to assess fraud risks if they have any suspicions.