Hong Kong Sees 20-fold Spike in Investment Scam Losses – Report

Hong Kong experiencing boom in investment scams, with cases more than tripling, losses increasing 20-fold https://t.co/NUIGRURHhM

— SCMP Hong Kong (@SCMPHongKong) September 28, 2021

Under the FATF’s crypto travel rule, NFTs have been included in the AML framework due to the burgeoning threat of financial crimes committed through such virtual assets. 

Responding to what attributed to the investment scam spike in the country, Ngan Hoi-ian, chief inspector at the police force’s commercial crime bureau stated:

“Scammers will use social media to get close to their victims and promote ‘high return, low risk’ online investment products, but many of these products don’t actually exist,” 

He further warned that fraudulent investment products can take the form of cryptocurrencies, overseas properties, and foreign currency exchanges, and also added that scammers approached their victims on a variety of platforms, including Facebook, Instagram and even the professional networking site LinkedIn.

Romance scams were executed in combination with investment scams, the police revealed. Approximately half, or 345, of the investment scams were romance cons, with victims ranging in age from 17 to 70. The highest amount of loss recorded through this technique was HK$9 million, incurred by a single victim, a piano teacher.

Suggested Read: From Fraudsters to Artists – The Dire Need of AML Compliance for NFTs