- Hong Kong syndicate used deepfakes to defraud victims of millions of dollars.
- Global pig butchering scams siphoned $4.4 billion in 2023.
Hong Kong authorities have dismantled a criminal syndicate that exploited deepfake technology and dating apps to con victims in Taiwan, Singapore, and Malaysia for over HK$34 million.
The operation led to the arrest of 31 individuals and the seizure of HK$100 million in suspected criminal assets, including cash, luxury handbags, and watches.
The group operated from two rented locations in Kowloon Bay.
Recruits were trained to create fake online personas using AI-powered deepfake images of attractive individuals. They then lured victims into online romantic relationships.
Once trust was established, the scammers persuaded victims to invest in fraudulent crypto platforms.
Victims believed they were profiting from their investments until attempts to withdraw funds were met with demands for taxes or penalty fees.
Superintendent Charles Fung Pui-kei highlighted the syndicate’s use of AI tools to enhance their deception.
“They used face-swapping technology to create convincing profiles, tricking victims into believing they were interacting with real people,” Fung said.
These are all hallmarks of “pig butchering” scams.
Globally, such scams siphoned over $4.4 billion last year, according to TRM Labs.
In research published earlier this year, the blockchain intelligence firm found that 75% of wallets linked to pig butchering scams showed signs of on-chain money laundering.
Update January 6: This story has been updated to clarify that the Hong Kong Police Force’s Commercial Crime Bureau is accusing the arrested individuals of the crimes.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
