A rise in crypto-related fraud cases has prompted fresh warnings from authorities in Hong Kong after a local woman lost nearly HK$7.7 million in a scam built around so-called AI-driven trading strategies.
A local report said more than 80 online investment fraud cases were recorded in the past week alone, with total losses exceeding HK$80 million, as officials warned that scammers were increasingly using advanced technologies and artificial intelligence to make such schemes appear credible.
How the Fraud Was Carried Out
Authorities said the woman was contacted on Telegram by a fraudster posing as an investment expert who promised guaranteed high returns through AI-powered quantitative trading for crypto investments. She was then directed to a fake investment platform and instructed to make 17 transfers of USDT and ETH.
The woman is reported to have lost about HK$7.7 million. The fraud came to light only after her repeated requests to withdraw funds were denied, according to details shared by authorities.
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Police Warn Over AI Trading Claims
The Hong Kong Police Force said scammers were increasingly relying on phrases such as AI trading and guaranteed profits to lure victims. Officials cautioned that while cryptocurrencies may appear attractive as a low-risk, high-profit investment option, they carry significant risks and are subject to market volatility.
The warning came amid a wider pattern of crypto-linked fraud cases. Authorities said the growing use of technology-focused sales pitches was making deceptive schemes more convincing to potential investors.
Another Major Case Reported Last Month
Officials also referred to a separate case from last month in which a 66-year-old retiree lost HK$6.6 million in a multi-stage crypto fraud that unfolded over six months. In that case, scammers similarly posed as investment experts before later returning with fake recovery offers to extract additional funds.
As the investigation continues, Hong Kong police have urged the public to remain cautious, avoid trusting unsolicited investment advice and verify the legitimacy of platforms before transferring money. They also encouraged local users to use the official CyberDefender platform to assess the risk of potential fraud before committing funds.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
