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Hong Kong police have warned about a romance scam in which a local insurance agent lost more than HK$26 million, or about $3.3 million, through a fake cryptocurrency trading app. The case was the largest of 25 romance-linked investment scams reported between July 24 and July 30.
Those 25 cases caused combined losses of nearly HK$70 million, or about $8.9 million. Police said the largest case began after the woman was introduced to a supposed insurance customer and later connected with a man who claimed to work in the car trade.
Online Relationship Leads to Crypto Investment
The victim, who is in her 50s, began speaking with the man online last year. Their conversations later developed into a romantic relationship, and he presented himself as an experienced investor.
The man encouraged her to invest in cryptocurrency through an unfamiliar trading app. He also introduced her to a person presented as a platform manager who would help manage the investment account.
Over about six months, the woman handed HK$4 million in cash to people linked to the scheme. She also transferred nearly HK$22 million into several bank accounts controlled by the scammers.
Fake App Displays Profits Above 800%
The fraudulent app showed the victim that her investment had produced returns of more than 800%. The displayed balance encouraged her to continue sending money even though the profits did not represent real assets.
When she later tried to withdraw the funds, the platform refused her request. The man and the other people involved then stopped responding, leaving her with losses exceeding HK$26 million.
Police have not disclosed which cryptocurrencies were supposedly traded. Authorities have also not said whether any of the victim’s money has been recovered or whether arrests have been made.
Police Warn Against Unverified Trading Apps
Hong Kong police advised investors to be careful when online contacts recommend unfamiliar investment platforms. Warning signs include promises of guaranteed returns, unusually large profits and requests to transfer money to personal or unrelated accounts.
Fake investment apps can display invented balances and profits while the scammers control the deposited funds. Victims often discover the fraud only when they try to withdraw a large amount and cannot access the supposed profits.
Hong Kong police operate the Scameter search tool, which allows users to check suspicious investment websites, payment accounts, phone numbers, email addresses and online profiles against reported fraud data. Police also advise anyone who receives a high-risk transaction alert to stop the payment and contact the Anti-Deception Coordination Centre.
