Retired engineer loses $9m to cyber investment scam

Toby Ng

An 80-year-old retired engineer has been conned out of HK$9.1 million, making her the one who suffered the worst loss during a week when police cracked down on online fraud.

More than 200 people were arrested during the operation targeting scammers posing as investment consultants.

The one-week operation, "Drillcrest," started from last Monday to Saturday.

A total of 157 men and 66 women, aged 18 to 69 years old, were arrested during the operation on suspicion of committing crimes that included obtaining property by deception, fraud and money laundering.

The majority were stooge account holders, or people who allowed their bank accounts to be used to receive or launder fraudulent payments or other criminal proceeds. The amount involved was HK$180 million.

Police froze about HK$3 million in proceeds.

The 328 victims were made up of 143 men and 185 women and ranged in age from 19 to 80 years old.

They come from different backgrounds. Most were between 20 and 40 years old, active on social media and had quite solid financial standings.

The victim in the HK$9.1 million case was taken in by a fraudster who claimed to be a senior analyst of digital assets at a bank and to want to rent one of her properties.

The fraudster claimed to be coming from the United States for work but kept postponing the arrival date after having agreed on the rent.

At the same time, the fraudster claimed to have made multiple profitable investments and boasted about knowing high-ranking individuals in certain investment institutions.

Nearly four months was spent gaining the victim's trust through social media.

The fraudster then claimed to have launched a cryptocurrency investment website which made use of insider information to generate quick profits through price differentials at minimal risks.

The engineer made more than 40 deposits into a bank account after being lured by the belief that the website had earned her over HK$100,000.

She ended up losing all her money and incurring significant debts. A stooge account holder has been arrested.

"Scammers often use words like "grey areas" to persuade puppet account holders to lend or sell their accounts, making them unwitting participants in money laundering," said Lau Cheuk Fung, senior inspector of the technology and financial crimes division in Wong Tai Sin.