Police have smashed a triad-controlled telephone fraud centre hidden in a Kwun Tong industrial building, arresting 20 people over at least 16 scams in which callers posed as finance firms and bullied victims into wiring money — a haul of more than HK$1.3 million.

East Kowloon Regional Crime Headquarters launched the operation today after tracing crooks who impersonated debt collectors and used telephone threats to frighten people into transferring cash. Officers raided a factory unit and dismantled a locally run phone-fraud hub.

Those held face conspiracy to defraud and money-laundering allegations. Among the 14 men and six women, aged 20 to 61, are one alleged mastermind, three staff members and several mule account holders. They reported working as clerks or sales assistants or being unemployed and remain in custody while investigators chase the money trail; further arrests are not ruled out. Twelve mobile phones, a tablet and multiple SIM cards were seized.

Chief Inspector To King-sang of the East Kowloon Regional Technology and Financial Crimes Unit said cases of telephone intimidation over supposed debts rose between January and June. Inquiries then linked a Kwun Tong industrial-block call centre to at least 16 telephone frauds between June and August, involving more than HK$1.3 million.

Inspector Lo Ka-lam of the same unit said the syndicate phoned victims while posing as a finance company, claimed unpaid sums were outstanding and used panic and a wish to make trouble go away as psychological pressure, demanding immediate transfers to nominated bank accounts. Calls were timed for office hours, when people are busy, less alert and short of time to check details — precisely when the gang pressed hardest for the remittance.

The outfit was triad-run, rented factory units on short leases and frequently changed addresses and SIM numbers to slow police pursuit. The busted centre covered about 250 square feet, had been operating for only about two months and was fitted with office desks and chairs. Sources said a ringleader oversaw staff making the calls, and that the crooks held victims’ personal data plus call-ranking forms and tables.

Police urged the public to treat unknown callers with caution. Anyone asked on any pretext to send money to a nominated account should verify the person or company first, dial the 24-hour Anti-Scam Helpline 18222, or use the Scameter tool to check identities. Renting, lending or selling a bank account that later processes crime proceeds can itself amount to money laundering — a serious offence carrying a maximum fine of HK$5 million and 14 years’ jail. Controllers of mule accounts break the law, police stressed, and so do the people who supply those accounts. The force’s shorthand remains: do not rent, lend or sell your bank account.

Selling or lending a registered SIM card is also risky. If it is used for fraud or other crime, the seller or lender may have assisted an offence and face liability. Conspiracy to defraud carries a maximum of 14 years’ imprisonment on conviction.

Sources: Dimsum Daily