Bitrabo Editorial
A Hong Kong-based director of a well-known company has become another victim of cryptocurrency scams, losing over HK$16 million (approximately US$2 million) in a string of fraudulent investments. The executive fell prey to sophisticated scammers who convinced him to set up an account on what appeared to be a legitimate application, only for him to later realize that it was a well-crafted facade designed to deceive unsuspecting investors.
Hong Kong Businessman Conned by Facebook Impersonator
According to The South China Morning Post, a 47-year-old businessman became the victim of a well-orchestrated scam when he accepted a friend request from an individual claiming to be an investment expert on Facebook in March. The fake expert and the victim took their conversations to WhatsApp, where they talked about lucrative investment opportunities in the cryptocurrency market. The fraudster convinced the director into opening an account on a fraudulent application that he believed was a legitimate investment platform.
Scammer Disappears with Millions in Crypto, Leaving The Victim in Despair
When the Hong Kong company director tried to withdraw his supposed profits from the fraudulent application, he found that the funds were inaccessible, and all attempts to contact the fraudulent investment expert proved futile. The scammer vanished, leaving the victim in despair and financial jeopardy. The victim promptly alerted law enforcement.
The SCMP quoted a source familiar with the case, who said, “Between April 19 and May 13, the victim transferred HK$16.23 million into 16 designated bank accounts in 39 transactions.” The magnitude of the losses suffered by the director highlights the highly intricate nature of the scam and the calculated steps taken by the fraudsters to exploit the victim’s trust and vulnerability.
Crypto total market barely unchanged at $1.08 trillion on the daily chart at TradingView.com
Soaring Reports of Crypto Scams in Hong Kong
Cryptocurrency scams are proliferating at an alarming rate in Hong Kong, according to the local police force. Startling statistics show a worrying 67% increase in fraudulent activities related to digital currencies, with 2,336 cases of crypto scam reported in Hong Kong last year alone compared to 1,397 incidents the previous year. The first quarter of this year saw a surge of 65.2%, with authorities receiving 8,886 reports of deception between January and March, compared to 5,378 cases during the same period in 2022. The need for robust measures to counteract these schemes is pressing.
-Featured image from National Geographic