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Hong Kong police issued a public warning on Friday following a surge in online investment fraud, with over 80 cases reported in the last week alone, resulting in total losses exceeding HK$80 million. One woman lost approximately HK$7.7 million in cryptocurrency after falling for a sophisticated scam on the messaging app Telegram.
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Authorities disclosed details of the case, which began when the female victim was contacted by a scammer posing as an "investment expert" on Telegram. The fraudster promised guaranteed high returns through methods they described as "quantitative trading" and "AI algorithms" for cryptocurrency investments.
Persuaded by the prospect of low-risk, high-reward profits, the victim was directed to a fake investment website. Following the scammer's instructions, she made 17 separate transfers of Tether (USDT) and Ethereum (ETH) from her digital wallet to a wallet controlled by the fraudster, amounting to a total loss of about HK$7.7 million.
The scam unraveled when her attempts to withdraw her supposed earnings were repeatedly denied with various excuses, at which point she realized she had been deceived.
Police officials noted that while cryptocurrencies might appear to offer a low barrier to entry and high potential returns, they are accompanied by significant volatility and extreme risk.
Scammers exploit this by using buzzwords like "AI-driven trading" and "guaranteed quantitative profits" to lure unsuspecting victims.
The Hong Kong Police Force urges the public to be vigilant and to thoroughly research any investment product before committing funds.
They strongly advise against trusting unsolicited advice from self-proclaimed "investment experts" found online and stress the importance of verifying the legitimacy of any investment platform or company beforehand.
For assistance, the public can use the "Scameter" feature on the CyberDefender website or the associated mobile app to assess the risk of fraud.
