In a significant crackdown on crypto fraud, Hong Kong police have apprehended four individuals, including a 14-year-old boy, for allegedly using counterfeit banknotes to defraud victims. This arrest brings the total number of people detained in similar cases since October of the previous year to 14, with the total losses amounting to HK$11 million (US$1.4 million).
Chief Inspector Lo Yuen-shan of the Commercial Crime Bureau announced on Sunday that the recent arrests involved suspects aged between 14 and 39. They were apprehended on conspiracy charges to defraud, possession, and use of 5,000 counterfeit banknotes. Lo emphasized the organized nature of the syndicate, detailing how roles were distinctly divided among the members.
The syndicate operated by sourcing fake banknotes and setting up bogus cryptocurrency exchange shops to lure victims. The two masterminds behind the scheme sourced the counterfeit notes and identified potential victims online, posing as reputable cryptocurrency investors. They offered enticing deals above the cryptocurrency market rate, drawing unsuspecting individuals to their fake exchange setups.
Crypto Exchange Scam Unveiled
Once victims were enticed to the bogus exchange premises, they were shown stacks of counterfeit HK$1,000 banknotes, only the top and bottom of which were authentic. This display was intended to convince the victims of the transaction’s legitimacy.
After gaining their trust, the fraudsters persuaded the victims to finalize online transactions. Upon cryptocurrency transfer, the suspects swiftly moved the assets out of the victims’ accounts, reneging on the payment.
Senior Inspector Mak Wai-kwong highlighted the risk posed to young residents during the summer holidays, warning them against the temptation of quick money through illegal means. He stressed the importance of vigilance and urged residents to verify the authenticity of banknotes by checking for shimmering patterns, a common feature of genuine notes.
The authorities’ swift action underscores the serious penalties associated with the production, circulation, or use of counterfeit currency, which carries a maximum sentence of 14 years in prison in Hong Kong.
Inspector Mak also reiterated the public awareness and alertness in financial dealings that are especially pathname in the fast-rising area of cryptocurrency. The police will continue investigation with efforts to break up such syndicates, with a view to protecting members of the public from scams of this nature.
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