A recent report revealed that cryptocurrency scams in Hong Kong resulted in losses of HKD 1.7 billion ($216.6 million) in the past year. The number of victims who fell prey to online scammers and transferred digital assets increased by 67%.
In 2022, cryptocurrency frauds accounted for approximately 50% of the $407 million in technology-related thefts from Hong Kong residents. According to the Hong Kong government’s InfoSec website, computer-related crimes increased from 16,159 in 2021 to 22,797 in 2022, including cyberattacks and online fraud.
The Hong Kong police’s CyberDefender website data showed that over the past four years, more than 50% of the HKD 3.2 billion ($407 million) stolen from Hong Kong residents via technology-related crimes involved cryptocurrency.
The report noted that cryptocurrency’s ability to conceal identities, transaction flow, and revenue beneficiaries have made it a preferred choice for online fraudsters. The report also indicated that the use of cryptocurrency in online criminal activities has also made it challenging for law enforcement agencies to track illegal funds.
An insider cited in the report revealed that the amount of money confiscated by the police in fraudulent schemes dropped by 43% in 2022, hitting its lowest level since 2019. The increase in cryptocurrency usage in such frauds may have contributed to this decline.
In October 2022, the Hong Kong police launched Scameter to combat cryptocurrency fraud. Scameter is a one-stop search engine for consumers to identify fraudulent activity, and Binance, the world’s biggest cryptocurrency exchange, backs it.
Binance also partnered with the police to notify its users in Hong Kong before they withdraw funds from the platform. Additionally, the exchange recently announced its intention to collaborate with other law enforcement agencies in combating fraud.
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