Joint cross-border operation dismantles $200m investment scam ring, 69 arrested 

A cross-border investment fraud and money-laundering syndicate involving more than HK$200 million has been dismantled, with 69 people arrested. 

The arrests follow a joint operation conducted on Monday by the Anti-Deception Coordination Centre (ADCC), the Crime Hong Kong Island Regional Headquarters, and mainland authorities. 

The investigation was initially triggered last month after a mainland resident reported falling victim to a devastating romance-investment scam.

Police said the victim was lured into downloading a fake cryptocurrency investment app after the fraudsters promised high returns. 

To build false trust, the scammers initially misled her with about HK$970,000 in fabricated profits, which ultimately convinced her to pour even more of her savings into the scheme.

It is reported that the victim transferred over HK$10 million to ten Hong Kong bank accounts, along with in-person gold trades and virtual currency transfers on the mainland between March and May. 

The officers successfully intercepted about HK$4.7 million in illicit proceeds, where ten Hong Kong accounts were found to have been used for transactions to another 106 local accounts for money laundering.

Among the 116 suspicious account holders identified, 98 were mainland residents, 17 were from Hong Kong, and one held a foreign passport.

Following the joint-operation, the authorities arrested 54 men and 15 women aged 18 to 60 for money laundering, where the syndicate allegedly handled more than HK$200 million in scam proceeds.

In-depth investigations by the ADCC have identified 118 additional puppet accounts linked to the scheme, uncovering 173 more victims who had lost nearly HK$200 million in total. 

Fortunately, the center’s swift action prevented another HK$9 million in potential losses during the operation.

Investment scams on the rise

Police reported that a total of 1,210 investment fraud cases were logged in the first quarter of this year. While this accounts for about 10 percent of all recorded scams—a figure similar to the same period last year—the financial impact has drastically worsened.

However, losses from investment fraud reached HK$920 million in the first three months, marking a 17 percent year-on-year increase and nearly half of total scam losses in the period.

Three investment traps to watch out for

In response to the growing threat, the Anti-Scam Coordination Centre has issued public guidance highlighting three common tactics used by modern investment fraudsters.

The first type involves fraudulent platforms and mobile applications that display fake profits and permit withdrawals to establish credibility. Victims are then asked for more money for "taxes" or "fees" before scammers disappear. 

Police advise against clicking suspicious links to download apps and urge caution before transferring money to personal or unfamiliar company accounts. 

The second scheme usually occurs in "investment groups" on social media, where self-proclaimed experts urge people to engage in small-cap stocks with lower levels of liquidity.  

When enough people buy in and drive up prices, fraudsters will then sell their holdings at the peak, triggering a crash and leaving victims with heavy losses. 

The last one involved building emotional connections through social media app and dating apps, where fraudsters would pose as successful professionals or attractive individuals introducing "high-return, low-risk" investment opportunities. 

Police reminded the public that the investment talk in online romance is a red-flag, urging anyone encountering suspicions investment opportunities or money transfer requests to use the "Scameter" app to evaluate the risk or call the 24-hour anti-scam hotline at 18222.

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