Two Hong Kong women lost a combined HK$9.7 million (US$1.24 million) to crypto scammers over the past few weeks, according to local media outlets.
Hong Kong police issued a public warning after more than 80 fraud cases were reported in a single week. The total losses exceeded HK$80 million or US$10.2 million.
Woman loses US$1 million in ‘AI’ crypto scam
In the larger of the two cases, a woman lost upward of HK$7.7 million or US$1 million.
The victim was contacted on Telegram by someone posing as an investment expert. The scammer promised guaranteed high returns through what they described as “quantitative trading” and “AI algorithms” applied to crypto markets.
Persuaded by the pitch, the victim was directed to a fraudulent investment website. She made 17 separate transfers of Tether’s $USDT and Ethereum from her crypto wallet to one controlled by the scammer. She only realized something was wrong when her repeated attempts to withdraw earnings were blocked with a string of excuses.
Police said that scammers increasingly exploit crypto’s reputation for high returns by deploying buzzwords like “AI-driven trading” and “guaranteed quantitative profits.” Those phrases are common lures with no basis in legitimate trading.
Woman loses over US$256,000 in a crypto romance scam
The second crypto scam case unfolded over a longer period and involved manipulation of a different kind.
A scammer first approached the victim, a woman aged over 50, on Instagram, engaging with her posts and sending affectionate messages on a daily basis. Over time, the scammer nurtured a romantic relationship with the victim before presenting an illusory crypto investment scheme with assured profits.
The woman was initially asked to pay HK$40,000 or US$5,000 as a handling fee to open an account on a fake investment platform. She then visited a physical shop on seven separate occasions to exchange cash for $USDT and transfer it to a wallet belonging to the con artist. In total, she lost more than HK$2 million or US$256,000.
The scammer disappeared once the transfers were complete. He essentially ghosted her and cut off all contact. This is a common tactic used by romance scammers once they believe they have extracted all the money they can from a victim.
Romance scams, in general, rely on months of relationship-building before any financial request is made. This prolonged timeline is what makes them effective. The victim becomes emotionally invested and trusts the scammer. They’re more likely to comply with requests for money.
The Hong Kong Police called on the public to be wary of unsolicited contact from self-described investment experts. They also urged caution with overly affectionate online relationships, particularly when they eventually involve requests for money.
Crypto scams and protocol hacks are on the rise. Cryptopolitan recently reported a story of famous musician G Love losing 5.92 $BTC worth around $424K to a fake Ledger app. The funds were siphoned after the victim entered his seed phrase into the fake app. Crypto sleuth, ZachXBT, traced the funds to KuCoin, where the $BTC coins were laundered across several wallets.