Hong Kong Police take action against cryptocurrency scam involving fake money
Hong Kong authorities have raised concerns about a rise in counterfeit banknotes being circulated through cryptocurrency scams. According to a local report, the Hong Kong police confiscated 3,396 fake notes worth a total face value of HK$2.55 million ($326,130) between January and April 2024. A significant portion of these counterfeits has been linked to just three cryptocurrency scams and frauds.
In one instance, a fraudster established a fake cryptocurrency for a cash counter in Tsim Sha Tsui. An unsuspecting woman fell victim to this scam when she exchanged HK$1 million in Tether’s USDT stablecoin. The scammer managed to escape with the cryptocurrency funds, leaving the woman with counterfeit HK$1,000 notes. Another individual was robbed of HK$1 million using a similar tactic, with the fraudster making off with the victim’s USDT.
The recent report reveals that the Hong Kong police have confiscated 1,693 “training notes” and 347 low-quality counterfeit bills associated with these scams. Training notes are used to train bank staff and closely resemble genuine currency. In connection with these scams, three individuals have been arrested, and their funds have been seized.
Earlier this year, the Hong Kong police also seized 3,000 hell banknotes, a safe, and a note-counting machine from a cryptocurrency exchange shop in Tsim Sha Tsui. Hell banknotes are utilized in traditional Chinese rituals as offerings and closely resemble real money.
Authorities are urging the public to surrender counterfeit notes to the police to avoid committing the offense of passing counterfeit currency.
In addition to the counterfeit banknotes issue, the Hong Kong police have observed a significant increase in cryptocurrency-related crimes. The number of crypto-related crimes has risen from 2,336 cases to 3,415 in just one year, resulting in a total loss of $553 million. These scams primarily involve two different tactics.
In one scenario, scammers persuade victims to transfer funds to their wallets, commonly seen in pig butchering scams. The scammers also employ overseas crypto exchanges, making it more challenging to track their activities, as reported by the authorities.
The other scenario involves scammers taking advantage of the hype surrounding cryptocurrencies. With cryptocurrencies gaining popularity in the financial world, scammers exploit the victims’ limited understanding of these digital assets to defraud them. The surge in crypto crimes has prompted increased scrutiny, leading Hong Kong’s securities regulator to establish a licensing regime for crypto service providers.
Meanwhile, Chinese authorities have committed to collaborating with the United Arab Emirates (UAE) to combat cybercrimes.
Overall, these developments highlight the need for increased vigilance and awareness among the public and authorities in tackling cryptocurrency scams and counterfeit banknotes in Hong Kong.
