Fraudsters are posing as money changers and offering attractive rates via text messages or social media posts to cheat Hongkongers, prompting police to warn residents to be cautious while exchanging foreign currency.

People have been lured in with appealing exchange rates, with scammers convincing them to make advance payments to secure a “great deal”, according to the force.

“Once the money is transferred, tricksters will be out of contact,” police said on their CyberDefender Facebook page last week.

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“Over the past two weeks, police have received eight reports of these money-exchange scams, with financial losses exceeding HK$5.2 million [US$665,850].”

A police source said scammers often offered exchange rates significantly better than the market’s to attract their targets.

“People involved in underground money exchanges could also be the target of these fraudsters,” the insider said.

He noted that those who wanted to conceal the source of money would engage in underground money exchange activities.

In Hong Kong, money service operators are among sectors such as the banking industry, securities and insurance companies, legal and accounting professionals and property agents that are required to monitor and report suspicious transactions under the law on money laundering and terrorist financing.

The source cautioned that residents who needed to exchange foreign currency for summer holiday travel could also fall victim to these scams.

The force advised the public to go to banks or reputable money changers when making foreign currency exchanges.

Police also urged the public to use the “Scameter” search engine, accessible via the CyberDefender website, to check for suspicious or fraudulent schemes.

The search engine has information to help users identify suspicious web addresses, emails, platform usernames, bank accounts, mobile phone numbers and IP addresses.

Official figures show that police handled 13,097 online swindle cases, with financial losses totalling HK$2.2 billion between January and May.

The amount lost this year represents a 37 per cent rise from HK$1.61 billion in the same period in 2023, despite recording only an increase of 113 cases of online fraud reports compared with the 12,984 logged in the same period last year.

Sources: SCMP