Hong Kong police recently arrested 100 individuals in a significant crackdown on fraud and money-laundering syndicates, recovering over HK$180 million (US$24.2 million) from 295 victims. The operation, code-named “Widepeak,” resulted in the detention of 75 men and 25 women suspected of being involved in money laundering and obtaining property by deception. These suspects were linked to various types of scams including investment scams, employment fraud, internet love scams, e-shopping swindles, and telephone deception.
Chief Inspector Cheng Ki-fung revealed that most suspects were holders of stooge accounts, with occupations ranging from cleaners and chefs to decoration workers. These individuals allegedly loaned or sold their bank accounts to criminal syndicates, enabling the collection and laundering of scammed money in exchange for a cut of the proceeds. The suspects were involved in 82 cases of deception, with one of the most significant losses coming from an investment scam that targeted a 74-year-old businessman who was swindled out of HK$23 million.
In response to the rising number of scams, the Hong Kong police have advised the public to use the force’s “Scameter” search engine to verify suspicious or fraudulent schemes. This search engine helps identify dubious web addresses, emails, platform usernames, bank accounts, mobile phone numbers, and IP addresses. The crackdown was launched in the Sham Shui Po district following a nearly 30% increase in reported deception cases, with Superintendent Chen Chi-cheong emphasizing the importance of targeting stooge accounts to disrupt fraud networks and protect the public from money laundering charges.
Hong Kong has seen a 42.6% increase in all deception cases last year, with over 39,000 reports filed and financial losses totaling HK$9.1 billion. Superintendent Chen highlighted the arrest of over 200 holders of stooge accounts by Sham Shui Po police in the past year, with charges filed against 111 individuals. With the rise of crypto fraud, scammers have been targeting South Korean crypto users with Ethereum-themed scams, sending alarming messages urging users to withdraw their funds to avoid losing them.
Police and regulators have noted the increasing prevalence of cybercrime related to virtual assets, with a significant number of cases involving phishing attacks. Last year, the National Police Agency in South Korea dealt with over 167,000 cyber fraud cases, with crimes involving virtual assets accounting for 38.3% of these cases. This indicates a growing trend in cyber fraud targeting cryptocurrency users, emphasizing the importance of caution and awareness when dealing with virtual assets to avoid falling victim to scams.
