Hong Kong police flag $3.3 million romance scam involving fake crypto app

Hong Kong police reported that a local insurance agent lost more than HK$26 million ($3.3 million) after being lured into a fake cryptocurrency investment scheme.

The case was the largest of 25 romance scams reported in Hong Kong between July 24 and July 30, resulting in losses of nearly HK$70 million ($8.9 million), according to a social media post published by local police on Saturday.

The police said that the victim, who's in her 50s, was introduced last year to a contact interested in buying insurance, and was later referred to a man known as "Uncle," who claimed to work in the car trade industry. The relationship quickly developed into an online romance.

The man, who presented himself as refined and caring, later claimed investment expertise and encouraged the victim to invest in crypto and download a purported trading app. Over roughly six months, the victim handed over HK$4 million ($510,000) in cash to accomplices and transferred nearly HK$22 million ($2.8 million) to multiple mule accounts, the police said.

When the fake app later showed gains exceeding 800% and the victim tried to withdraw the funds, the requests were refused. The online boyfriend and the accomplices then disappeared.

Rampant fraud

Authorities worldwide have been stepping up efforts to combat so-called "pig butchering" investment scams. In April, the FBI — working with law enforcement agencies in Dubai, Thailand, and China — said the global task force arrested 276 suspects and disrupted nine scam centers used for crypto investment schemes.

Crypto-related fraud has been on the rise, with losses hitting a record $11.3 billion last year, accounting for more than half of the $20.9 billion in total internet crime losses tracked by the FBI, according to an official report.

Separately, earlier this month, the Hong Kong Securities and Futures Commission ordered internet brokerage firms and crypto trading platforms to phase out one-time passwords for user logins and device registration. The move was part of the regulator's campaign against account takeovers, fraud, and spoofing operations.