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Hong Kong Police Crackdown on Fraud and Money-Laundering Syndicates
Hong Kong police have arrested 100 individuals in a significant crackdown on fraud and money-laundering syndicates, recovering over HK$180 million (US$24.2 million) from 295 victims. In a two-week operation code-named “Widepeak,” which concluded on Monday, 75 men and 25 women were detained on suspicion of money laundering and obtaining property by deception.
Details of the Operation
Chief Inspector Cheng Ki-fung of the Sham Shui Po district crime squad disclosed that most suspects were holders of stooge accounts, with occupations ranging from cleaners and chefs to decoration workers. These individuals allegedly loaned or sold their bank accounts to criminal syndicates, enabling the collection and laundering of scammed money in exchange for a cut of the proceeds.
Types of Scams
Chief Inspector Cheng revealed that the suspects were linked to 82 cases of deception, including investment scams, employment fraud, internet love scams, e-shopping swindles, and telephone deception. The most significant financial loss stemmed from an investment scam targeting a 74-year-old businessman who was swindled out of HK$23 million through a cryptocurrency scheme.
Response and Advice from the Police
In response to these rising scams, the police have advised the public to utilize the force’s “Scameter“ search engine to verify suspicious or fraudulent schemes. The search engine helps identify dubious web addresses, emails, platform usernames, bank accounts, mobile phone numbers, and IP addresses. The force’s 18222 “Anti-Scam Helpline“ is also available for assistance.
Concerns About Crypto Fraud
The city experienced a 42.6% increase in all deception cases last year, with financial losses from these cases surging by 89%. Superintendent Chen Chi-cheong emphasized the importance of targeting stooge accounts, warning the public against engaging in activities that could lead to money laundering charges.
Scammers Targeting Crypto Users
Scammers have been targeting South Korean crypto users with various schemes, including an Ethereum-themed scam that urges users to withdraw their funds immediately to avoid losing them. Police and regulators have noted the rise in such scams, with cybercrime related to virtual assets increasing in South Korea.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
