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A 55-year-old individual from Hong Kong has allegedly become a victim of an online cryptocurrency investment scam, resulting in the loss of her entire savings, totaling nearly HK$7 million (approximately $900,000).
Such fraudulent activities have been increasingly common in the area recently. A report estimated that investors in Hong Kong lost around $50 million in the first half of 2022 due to cryptocurrency schemes.
‘Obtaining Property by Deception’
As reported by the South China Morning Post, the woman was targeted when an offender reached out to her via Instagram in January of this year. The investigation revealed that they subsequently began conversing on a different messaging platform.
After establishing trust, the scammer encouraged her to create an account on an unfamiliar site to invest in cryptocurrencies, promising substantial returns. Law enforcement officials indicated that the information provided on the platform regarding digital asset prices was fabricated and manipulated by the perpetrator.
“She was informed she would receive daily interest of HK$2,500 along with a guaranteed profit of tens of thousands of US dollars,” stated the police.
The perpetrator persuaded the victim to transfer HK$6.96 million ($886,600) between February and the end of March into 19 specified bank accounts.
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When the woman tried to withdraw some of her funds, she was asked to pay a fee. She even attempted to borrow money from her daughter before realizing she had been deceived.
The retiree from Hong Kong sought assistance from the police, who categorized the case as “obtaining property by deception,” a crime that carries a potential sentence of up to ten years in prison. However, no suspects have been apprehended thus far.
This incident is not the only significant crypto scam reported in Hong Kong this week. A 44-year-old woman contacted the police a few days ago, claiming she lost $3.1 million after investing in the stablecoin Tether (USDT) on a questionable platform.
Crypto Schemes on the Rise in Hong Kong
Data from 2022 indicated that there were over 10,000 cyber attacks in Hong Kong from the beginning of January last year to the end of June. Among these, 798 were crypto-related schemes that resulted in approximately $50 million in losses for investors. In contrast, such crimes accounted for $21 million in losses during the first half of 2021.
The police recently reported that the total number of crypto scams in China’s special administrative region had risen to 2,336 by the end of 2022, reflecting a 67% increase compared to incidents in 2021. Law enforcement managed to address 1,884 of these cases.
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