Hong Kong police have busted a criminal group that used deepfake technology and dating apps to defraud victims of more than HK$34 million ($4.37 million) in Taiwan, Singapore and Malaysia.
The operation resulted in the arrest of 31 people and the seizure of suspected criminal assets worth HK$100 million, including cash, luxury handbags and watches.
The group rented two locations in Kowloon Bay to operate. Recruiters were trained to use AI-powered deepfake images of people to create fake online personas and then lure victims into online relationships. Once trust was established, the scammers convinced victims to invest in fraudulent crypto platforms. Victims thought they had profited from their investments until they were asked to pay taxes or fines when they tried to withdraw their funds.
Such scams defrauded more than $4.4 billion worldwide last year, according to blockchain intelligence firm TRM Labs. In a study published earlier this year, the company found that 75% of wallets associated with the pig-killing plate scam showed signs of on-chain money laundering.