AI-Powered Deepfake Romance Scam in Hong Kong Defrauds Victims of $46 Million

Deepfake lovers swindle victims out of $46M in Hong Kong AI scam

Scammers used AI deepfake tools to create fake online personas, tricking victims in video calls. On Monday, Hong Kong police announced the arrest of 27 people involved in a romance scam operation that used AI face-swapping techniques to defraud victims of $46 million through fake cryptocurrency investments, reports the South China Morning Post. The scam ring created attractive female personas for online dating, using unspecified tools to transform their appearances and voices. Those arrested included six recent university graduates allegedly recruited to set up fake cryptocurrency trading platforms. An unnamed source told the South China Morning Post that five of the arrested people carry suspected ties to Sun Yee On, a large organized crime group (often called a "triad") in Hong Kong and China. "The syndicate presented fabricated profit transaction records to victims, claiming substantial returns on their investments," said Fang Chi-kin, head of the New Territories South regional crime unit. Scammers operating out of a 4,000-square-foot building in Hong Kong first contacted victims on social media platforms using AI-generated photos. The images depicted attractive individuals with appealing personalities, occupations, and educational backgrounds. The scam took a more advanced turn when victims requested video calls. Superintendent Iu Wing-kan said that deepfake technology transformed the scammers into what appeared to be attractive women, gaining the victims' trust and building what they thought was a romance with the scammers. Victims realized they had been duped when they later attempted to withdraw money from the fake platforms.

Hong Kong cops clean out alleged $46M deepfake crypto scam

Hong Kong police have busted an alleged scam center and arrested 27 people accused of using artificial intelligence deepfakes to carry out a crypto romance investment scam that defrauded victims more than $46 million. The scammers used AI deepfakes to trick victims into thinking they were developing romantic relationships with real women before being lured into the crypto investment scam, the Hong Kong Police Force told local media on Oct. 14. Victims were defrauded out of a total of $46.3 million (360 million Hong Kong dollars), the police claimed. The alleged cross-border scam scheme was carried out from a 4,000-square-foot industrial building in the Hong Kong neighborhood of Hung Hom and targeted mostly men from mainland China, Taiwan, India and Singapore. The group recruited local university graduates who majored in digital media and paid overseas IT professionals to build a fake crypto investment platform, the police said. The operation's leaders also allegedly developed training manuals for those carrying out the AI deepfake scams. Police commenced an operation to take down the scheme on Oct. 9, seizing several computers, luxury watches and more than 100 mobile phones belonging to members of the alleged scam ring. The 27 accused range between 21 and 34 years of age and 21 members of the group are men. Police have charged them with "conspiracy to defraud" and "possession of offensive weapons" offenses. Related: Michael Saylor has been removing 80 deep fake videos of himself daily In February, deepfake scammers managed to trick an employee at a multinational finance firm in Hong Kong into sending out more than $25 million of company funds in a scam that impersonated multiple company executives in an online video meeting. It is believed the scammers stole and used previous footage of the company's executives to create the deepfake impersonations, according to Hong Kong Police's Baron Chan. "We want to alert the public to these new deception tactics," Chan stressed at the time. Crypto scammers stole $4.6 billion from victims in 2023, with funds stolen from romance or "pig butchering" scams doubling year-on-year since 2020, Chainalysis data shows.

Hong Kong romance scam targets Asian men with deepfake videos, swindles $46M - VnExpress International

Hong Kong police have dismantled a criminal ring that used AI-generated deepfake videos to scam men across Asia, resulting in total losses of US$46 million. Police announced on Monday the arrest of 27 suspects, including 21 men and six women, in the Hung Hom District. The suspects, aged between 21 and 34, were mostly well-educated, with many holding degrees in digital media and technology. According to police, many of them were recruited by the gang after attending local universities. The scammers allegedly worked with IT experts abroad to create a fraudulent cryptocurrency platform, pressuring victims into making investments, CNN reported. The victims, who were from Hong Kong, mainland China, Taiwan, Singapore, India, and other Asian economies, were targeted through social media. The gang used AI-generated deepfake videos to pose as attractive women and lure victims. Fang Chi Kin, head of the New Territories South regional crime unit, explained that the scammers fabricated entire personas to build intimacy with the victims. They even conducted fake video calls using deepfake technology, making the victims believe they were in a romantic relationship. "They got in touch with the victims on social media, and sent them photos generated by AI, shaping a character who had a very appealing appearance, personality, career and academic qualifications," he told The Star. "Men from different regions were among the victims... Although the victims had video calls [with the character], they falsely believed that they were dating a high-quality person." Once trust was established, the fraudsters convinced their victims to invest in a fake cryptocurrency exchange, providing fake profit transfer records to entice further investment. The scammers continued to paint promising future scenarios, including travel plans, to keep the victims invested. Each scammer could earn up to HKD10,000 (US$1,300) per month, with some making as much as HKD100,000. The gang swindled a total of HKD360 million from their victims. On their official Facebook page, Hong Kong police also released images of a "handbook" used by the gang to manipulate victims' emotions and trust. The guide outlined strategies such as learning about the victim's worldview to design the "ideal partner," creating personal or business crises to build trust, and selling a "beautiful future" to push victims into investing in the fake cryptocurrency platform. The scam, which lasted about a year, was exposed after police received information in August.