Force highlights new ruse that targets those planning trips to Japan by offering fake currency exchange deals with favourable rates

Hong Kong police have arrested 50 people in a seven-day crackdown on fraud syndicates accused of using internet and phone scams to cheat residents out of HK$110 million (US$14.1 million).

The force said on Friday that the largest sum, amounting to HK$30 million, was conned from a company director who fell victim to an investment fraud and was coaxed into transferring his money into five different bank accounts.

Senior Inspector Kwan Chi-chung of the Yau Tsim district technology and financial crime squad said three of the bank account holders were arrested in connection with the case.

Kwan also highlighted a new ruse that targeted residents planning holiday trips to Japan and needing yen.

Using the name and logo of a Yau Ma Tei money exchange shop, fraudsters set up a webpage on social media and claimed to offer Japanese currency at a better exchange rate, he explained.

To lure targets into exchanging more money, “they claimed to offer an extra 10,000 Japanese yen for every 500,000 yen exchanged,” Kwan said.

Victims were instructed to transfer money to designated bank accounts before proceeding to the Yau Ma Tei shop to collect their Japanese banknotes.

The case came to light in June after the owner of the shop found that people were turning up to collect money he had not transacted and called police.

According to police, 12 residents so far had fallen for the scam and lost about HK$310,000. The force arrested three men in connection with the case last week.

“Investigations suggest the three suspects sold their bank accounts to a criminal syndicate for a small amount of cash,” Kwan said. “The syndicate then used the accounts to collect money scammed from victims.”

The six bank account holders arrested in the two cases were among 50 people detained by police in connection with 43 cases in a crackdown on internet and phone scams between September 19 and 26.

Kwan said the 43 cases, which involved financial losses of HK$110 million, included 10 investment cons, 10 e-shopping swindles, eight employment fraud cases and eight telephone scams.

He said most of the suspects were holders of bank accounts used to collect stolen or laundered money, or the registered owners of SIM cards used to contact targets.

According to the force, more than 5,600 people were arrested on suspicion of money laundering in the first half of this year, a 12 per cent rise compared with those apprehended in the same period in 2023.

Kwan said more than 4,400 of the suspects were stooge account holders – those who loaned or sold their bank accounts to syndicates.

The senior inspector reminded residents not to lend or sell their bank accounts to others for transacting cash with unknown sources, as they could face money-laundering charges. The offence is punishable by up to 14 years in jail and a HK$5 million fine.

Hong Kong reported 24,407 scam cases from January to July this year, 12 per cent more than during the same period in 2023.

Losses climbed to HK$5.14 billion, representing a 50 per cent increase over the amount recorded in first seven months of last year.

Sources: SCMP