Scammers Stole Over $200M in Crypto From Hong Kong Residents Last Year: Report

Losses from crypto-related scams in Hong Kong amounted to more than HK$1.7 billion (Approx. $216.6 million) in 2022, a 106% rise from the year prior, according to a report by the South China Morning Post (SCMP) that cited local police figures.

The report stated that the aforementioned figure accounted for more than half of the HK$3.2 billion ($407.6 million) stolen from city residents, as well as some victims living abroad, in around 23,000 reports of technology crimes in 2022.

67% Surge in Scam Cases

The report added that around 2,336 cryptocurrency-related scam cases were reported in Hong Kong last year, a 67% increase from 1,397 cases reported in the year prior.

Local authorities revealed that cryptocurrency had become a favorite tool for scammers in the Special Administrative Region. According to the report, local authorities witnessed a surge in the use of crypto as a medium for internet scams as scammers were able to obfuscate their “identities in transactions and hide the origin, flow and final destination of their proceeds of crime.”

New Type of Scams

Authorities also revealed that crypto scammers are increasingly deploying new types of scams to con victims out of their money. The report cited one case of one woman victim – the vice president of a fashion company that was recently conned out of HK$6 million ($764,343 million) in crypto.

The victim fell prey to scammers after she responded to an online post about the sale of a kitten by a scammer who claimed to be a pet lover in Thailand. The woman, who was trying to adopt the kitten online, was later told the pet had died during delivery, but she would be entitled to an insurance payout.

She was told by the scammer to pay administrative fees to release the insurance compensation, prompting her to transfer HK$6 million ($764,343 million) in BTC to an e-wallet before she realized she had been scammed.