Hong Kong Woman in Her 50s Loses $3.3 Million in Romance Scam Linked to Fake Crypto Investment
Summary
- A Hong Kong insurance agent in her 50s lost about $3.3 million after falling for a cryptocurrency investment scam linked to an online romance scheme.
- A fake investment application showed returns of more than 800%, but the victim was unable to withdraw funds before the man she had entered a romantic relationship with and his accomplices disappeared.
- According to the FBI, losses from cryptocurrency-related fraud totaled $11.3 billion last year, accounting for more than half of all internet crime losses, while Hong Kong’s SFC ordered cryptocurrency trading platforms to phase out OTPs.
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A Hong Kong insurance agent in her 50s lost $3.3 million in a cryptocurrency investment scam after falling victim to an online romance scheme.
The Block reported on August 3 that Hong Kong police said the woman was introduced last year to a man through a prospective insurance client. She was later defrauded of about HK$26 million, or roughly $3.3 million.
The man described himself as “Uncle” and said he worked in the auto industry, according to police. He developed an online romantic relationship with the victim, then claimed to be a cryptocurrency investment expert and urged her to invest.
After installing a fake investment app he directed her to use, the woman handed HK$4 million, or about $510,000, in cash to accomplices over roughly six months. She also made multiple transfers totaling about HK$22 million, or roughly $2.8 million, to bank accounts opened under other names.
The app later showed returns of more than 800%. But when she tried to withdraw the money, the request was denied. The man and his accomplices then cut off contact and disappeared.
The case was the largest among 25 romance scams reported in Hong Kong between July 24 and July 30. Total losses during that period reached about HK$70 million, or roughly $8.9 million.
Cryptocurrency investment fraud is increasing globally. In April, the FBI said it worked with authorities in the United Arab Emirates, Thailand and China to arrest 276 members of cryptocurrency investment scam rings and identify nine related fraud centers.
Losses tied to cryptocurrency-related fraud totaled $11.3 billion last year, the FBI said. That accounted for more than half of the $20.9 billion lost to all internet crime.
Separately, Hong Kong’s Securities and Futures Commission ordered online brokerages and cryptocurrency trading platforms this month to phase out one-time passwords used for logins and device registration. The move is intended to reduce account takeovers, fraud and phishing.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.