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Cryptocurrency fraudsters have successfully scammed over 13 people so far in Hong Kong using a new scheme.
Key Notes
Thirteen crypto investors in Hong Kong have been lured into fraudulent schemes by fake crypto shops in Kowloon.Victims have lost $1.9 million in scams during the first nine months of 2024.The largest reported loss was HK$4 million from a victim who fell for a scam after initial successful trades.Crypto investors in Hong Kong have been duped $1.9 million in the first nine months of the year, and many cases might follow in the next three months while authorities try to take control of the situation and nab the criminals. The fraudsters have successfully scammed over 13 people so far in the region using a new approach.
According to a report from SCMP, in the western part of Kowloon, a residential district in Hong Kong, over 13 investors have been scammed by fake crypto shops where the victims tried to carry out transactions after being lured by lucrative deals advertised by the scammers. These shops claimed to offer better rates and pursued investors to invest more money by showing successful transactions.
The police confirmed that the largest amount that an investor lost was HK$4 million (around $514 million) in a cryptocurrency shop. A 43-year-old man went to the shop located in a shopping center in Sham Shui Po after successfully doing two transactions worth HK$400,000 and HK$800,000 and got Tether tokens in return. Interestingly, the third transaction was of a higher amount, and the other two were successfully processed to win the man’s trust.
Senior Inspector Leung Wai-hin confirmed that the man was trapped inside the store on Monday and had to hand over the money he had brought to the shop. Leung further stated:
“After the victim handed over the cash to a female receptionist at the counter, she falsely claimed she needed to count the money and exited into a separate room. Growing suspicious while waiting, the man tried to leave but found himself locked inside the shop. He then called police.”
It is important to note that the scammers fled with the money before the officers were able to arrive on the scene and take care of the situation. Based on the videos from the cameras installed in the place, the Hong Kong authorities have arrested two men, aged 23 and 30, respectively, and the search for a woman and other people possibly involved is ongoing.
Diving Deeper into the Hong Kong Crypto Shop Scam
The authorities exclaimed that in such scams, the criminal often hires drug dealers or people from a similar profile to rent a place in a prominent location, and once they nab a victim and dupe them of a high sum, they immediately flee. These scammers are often found using “bundles” of fake banknotes to pursue victims to transfer their crypto to a designated wallet.
Except for the notes on the top, all the other notes are fake or “training notes,” explained Leung while asking investors to maintain caution while approaching such shops and do diligent background research before approaching such a store.
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With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
