The Hong Kong police have recently conducted a major crackdown on fraud and money-laundering syndicates, resulting in the arrest of 100 individuals. These suspects were involved in various scams, resulting in losses amounting to HK$180 million. Most of the suspects were holders of stooge accounts, who lent or sold their bank accounts to criminal syndicates in exchange for a cut of the proceeds. The scams included investment fraud, employment fraud, online shopping swindles, and telephone deception. One particular case involved a 74-year-old businessman who was swindled out of HK$23 million in an investment scam.
In response to the increasing incidents of scams, the Hong Kong police have advised the public to utilize the force’s “Scameter” search engine to verify suspicious schemes. The search engine helps identify dubious web addresses, emails, platform usernames, bank accounts, mobile phone numbers, and IP addresses. Additionally, the police’s Anti-Scam Helpline is available for assistance. The crackdown was initiated due to a significant rise in reported deception cases in the Sham Shui Po district, with the district recording 706 cases in the first four months of the year alone.
The city of Hong Kong has seen a surge in all deception cases, with a 42.6% increase last year, totaling 39,824 reports. Financial losses from these cases also rose by 89%, reaching HK$9.1 billion in 2023. The police have noted a rise in crypto-related fraud cases, with scammers targeting South Korean crypto users with an Ethereum-themed scam. Fraudsters send alarming messages warning users that their ETH coins will be “burned” if they do not act quickly. Recipients are directed to a phishing site where scammers attempt to steal wallet details and passwords.
Superintendent Chen Chi-cheong emphasized the importance of targeting stooge accounts, as they are essential to fraud networks for collecting and laundering illicit funds. He warned the public against lending or selling their bank accounts to others, as they could face money laundering charges punishable by up to 14 years in jail and a HK$5 million fine. In the past year, over 200 holders of stooge accounts were arrested by the Sham Shui Po police for money laundering and conspiracy to launder money, with charges filed against 111 individuals and 11 convictions resulting in prison sentences.
The crackdown operation, code-named “Widepeak,” lasted for two weeks and resulted in the recovery of over HK$180 million from 295 victims. Chief Inspector Cheng Ki-fung of the Sham Shui Po district crime squad revealed that the suspects were linked to 82 cases of deception. The most significant financial loss came from an investment scam targeting a 74-year-old businessman who lost HK$23 million. The police have been actively addressing the issue of rising scams through various measures, including the use of the “Scameter” search engine and the Anti-Scam Helpline.
Overall, the crackdown on fraud and money-laundering syndicates in Hong Kong has led to the arrest of 100 individuals involved in various scams, resulting in significant financial losses to victims. The police have advised the public to remain vigilant and utilize resources such as the “Scameter” search engine to verify suspicious schemes. With the rise in crypto-related fraud cases, law enforcement agencies are stepping up efforts to combat these crimes and hold perpetrators accountable.
