Financial Crime World

Hong Kong Police Crackdown on Investment Fraud Yields 100 Arrests, HK$180 Million in Losses

A major crackdown on investment fraud and money laundering has resulted in the arrest of 100 suspects linked to scams that have caused losses totaling HK$180 million. The operation, which spanned two weeks from May 6 to May 20, involved 82 cases of deception and money laundering affecting 295 victims.

Operation Details

  • 82 cases of deception and money laundering were investigated
  • 295 victims were affected
  • Losses totaled HK$180 million

The majority of those arrested were “stooge account” holders who had allegedly provided their bank accounts to fraud syndicates to collect and launder scammed money. Three men and a woman have been taken to court on suspicion of obtaining property by deception and money laundering, while others were granted bail and will report to the police in June.

Notable Cases

  • The largest single loss was HK$23.7 million
  • Cases involved fraudulent activities related to:
    • Investment
    • Online job-seeking
    • Online dating
    • E-commerce
    • Phone scams
  • A 74-year-old man who lives overseas suffered the biggest loss after being scammed into investing in cryptocurrencies through an online encounter

Warning from Police

Police Superintendent Chen Chi-cheong warned residents against lending their bank accounts to scammers, stating that doing so could result in longer jail time for those convicted. He cited a case in which the District Court raised the sentence of a stooge account holder to two years and four months in jail after a police application.

Hong Kong’s Crime Statistics

  • Over 90,000 reported crime cases were logged in 2023
  • Fraud-related offences led the surge in crimes
  • Commissioner of Police Raymond Siu has vowed to work with the Department of Justice and the Hong Kong Monetary Authority to curb scams and expedite prosecution

Sham Shui Po Police’s Efforts

  • The Sham Shui Po police have prosecuted 110 suspected stooge account holders in the past year
  • 34 were tried in the District Court, with 11 convicted
  • The crackdown on stooge account holders is seen as an effective way to combat fraudsters, with police promising to continue their operation to disrupt criminal networks.