Hong Kong busts crypto scam that used AI deepfakes to create ‘superior women’

Police in Hong Kong have reportedly broken up a crypto scam that used face-swapping technology to persuade lonely men to part with HK$360 million (US$46 million) via a fake investment platform.

According to a statement issued on Monday, police arrested 21 men and six women for their part in the plot that saw them swap their faces with those of beautiful women during video calls to persuade victims to hand over money.

Victims included men from Taiwan, China, Singapore, and India.

“The syndicate’s operation began with online romance,” said Senior Superintendent Fang Chi-kin, head of the New Territories South regional crime unit.

“Following initial contact with victims on social media platforms, they first sent artificially generated photos using AI technology to create attractive individuals in terms of appearance, personality, occupation, education, and other aspects,” he added.

“Despite engaging in video calls, the victims continued to believe they were building a romantic relationship with supposedly superior women.”

Fraudsters sent victims fabricated proof of profits but it became clear that they had been conned when they were unable to withdraw any funds.

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According to police, recruits to the Hong Kong crypto scam were fully trained and even received a manual detailing how to approach victims and create personas.

“These criminals view innocent citizens as exploitable targets, using every word to gain their trust, ultimately aiming to take their money,” said Superintendent Iu Wing-kan.

Authorities said the operation represented the first time they had cracked down on a Hong Kong-based fraud syndicate that employed deepfake tech to cheat people.

As a result of the raids on the gang’s 4,000 sq ft warehouse base, police also seized computers, more than 100 mobile phones, HK$200,000 ($26,000) in suspected proceeds, and a number of luxury watches.

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