Hong Kong Crypto Scams Account For Over 50% Of Tech Crime Losses

Technology-related crimes victimized Hong Kong residents in 2022, resulting in over $407 million in losses. According to data from the Hong Kong police CyberDefender website, cryptocurrency scams caused more than half of the losses. Crypto scams in Hong Kong amounted to HKD 1.7 billion ($216.6 million), a staggering 106% increase from the previous year.

Data from the Hong Kong police CyberDefender website revealed that over 50% of residents’ $407 million losses in 2022 were due to cryptocurrency scams. The total amount lost to crypto scams alone was HKD 1.7 billion ($216.6 million), which increased by 106% from the previous year.

Despite a bearish trend in the cryptocurrency market, the number of crypto-related scams in Hong Kong surged by 67% in 2022, as the South China Morning Post (SCMP) reported. This increase led to 2,336 reported cases, a significant rise compared to the previous year.

Hong Kong has become a hotspot for crypto-related scams, with fraudsters using the anonymity of cryptocurrency transactions to their advantage. According to insiders, tracking the movement of funds has become more complicated for enforcement as cryptocurrency as a medium for online scams increases.

Hong Kong’s Crypto Scammers

The Hong Kong police force’s cybersecurity and technology crime bureau has shared some observations about the typical crypto-related scammer. Fraudsters commonly present themselves as seasoned investors in cryptocurrency, precious metals, or foreign exchange products. This is a typical tactic used to deceive individuals. They often lure victims into installing fraudulent investment applications that show fake transactions and returns.

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Hong Kong’s cryptocurrency infrastructure development plans involve a licensing regime for crypto exchanges proposed by the Securities and Futures Commission. This initiative sets Hong Kong apart from China, which has implemented a complete ban on cryptocurrencies.

The increase in crypto-related scams in underscores the importance of being vigilant and cautious when investing in cryptocurrency. Due to the anonymity of crypto transactions, identifying scammers and recovering lost funds can be challenging. Before investing in the cryptocurrency market, exercising caution and conducting proper research is crucial.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing

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