AI-based deepfake romance crypto scam racks up $46 million, says Hong Kong police

Police in Hong Kong have dismantled an organized network that allegedly used AI deepfake romance scams to deceive victims out of more than $46 million of cryptocurrency.

It’s in local media where the Hong Kong Police Force’s news conference has been reported on, with 27 people said to have been detained.

Police arrested 21 men and six women, aged between 21 to 34, following a raid on the alleged operating center at a 4,000-square-foot industrial unit in the Hung Hom district on October 9.

Computers, mobile phones, luxurious watches, and around $25,750 were seized in suspected criminal proceeds.

The cross-border fraud allegedly involved local university graduates who focused on digital media who were recruited by the group to be technology specialists.

The group is also suspected to have collaborated with overseas fraudsters and IT experts to create a fake cryptocurrency investment platform.

It’s through artificial intelligence-based ‘deepfake’ technology that video chats were conducted, in an effort to lure in victims who thought they were developing a romantic connection with women.

Once the trust and connection are said to have been established, the victims were reportedly encouraged to invest in virtual cryptocurrencies through the faux platform which had been set up.

Deepfakes are typically videos, images, or even audio which has been edited or digitally generated to depict another person or someone who doesn’t actually exist.

The whole operation has been described as being meticulously organized and unusually large, with the group even allegedly creating training manuals in both Chinese and English.

The manuals were said to instruct on how to build fake romances and the trust, as well as then luring victims into the investment scam.

According to reports, AI technology was used to create fake personas who victims would then spend their time speaking with. These personas are said to have included even the smallest details, like appearance, personality, occupation, and educational background.

Featured Image: AI-generated via Ideogram

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