Cyber Crime
Cyber Criminals Use Deepfake Technology to Swindle Love-Struck Men Out of Rs380 Crore
Hong Kong police have successfully dismantled a local fraud syndicate that employed deepfake technology to deceive men, including victims from Singapore, out of HK$360 million (US$46 million). This marks the first case in the region where authorities uncovered a scam of this scale using artificial intelligence (AI) to create fake identities.
According to a police statement on Monday, 27 individuals have been arrested, including university graduates who were enlisted by the syndicate to set up fake cryptocurrency trading platforms. These platforms were designed to lure victims into fraudulent investments. The swindlers targeted men from various regions, including Hong Kong, mainland China, Taiwan, India, and Singapore.
Police sources revealed that the group established its operations in a 4,000 sq ft industrial unit in Hung Hom last October. University graduates, particularly those with digital media backgrounds, were recruited to help execute the crimes using computer networks and social media.
Senior Superintendent Fang Chi-kin of the New Territories South regional crime unit explained that the scam started with online romance schemes. Scammers, using AI-generated images and personas, created fake profiles of highly attractive women, tailored to appeal to victims’ preferences in terms of appearance, personality, and background. These profiles were used to initiate contact with victims on social media platforms.
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Even after engaging in video calls, victims were unable to detect the deception, as the syndicate used deepfake technology to convincingly alter the swindlers’ faces and voices, making them appear as attractive women. Once the fake relationships were established, the victims were coaxed into investing in bogus cryptocurrency platforms, with fabricated profit records presented to encourage further investments.
Victims only realized they had been defrauded when they were unable to withdraw their funds. Superintendent Iu Wing-kan explained that the syndicate was highly organized, with separate teams handling various roles such as technical support, scam operations, and accounting. Recruits were given thorough training, including manuals that detailed how to build trust with different types of victims and lead them into making investments.
Police raided the syndicate’s operations last Wednesday, arresting 21 men and six women. Among those detained were five key members, suspected to be affiliated with the Sun Yee On triad. Officers also seized computers, over 100 mobile phones, HK$200,000 in suspected criminal proceeds, and several luxury watches. The arrested individuals included six university graduates and ten high school graduates.
Police are continuing their investigation and expect to make further arrests. The force has already handled over 500 cases of online romance scams, with victims losing HK$242 million, and nearly 2,000 cases of investment fraud, totaling HK$1.08 billion, in the first half of this year.