Hong Kong's losses to crypto scams doubled to $217M last year: Report

Some countries astir the satellite suffered bigger fiscal losses to cryptocurrency scams contempt a monolithic carnivore marketplace successful 2022.

Losses from crypto scams successful Hong Kong amounted to 1.7 cardinal Hong Kong dollars ($216.6 million) past year, surging 106% from a twelvemonth before, according to the section police.

The fig of crypto-related scams reported successful Hong Kong successful 2022 equaled 2,336 cases, surging 67% from 1,397 cases recorded by constabulary successful 2021, the South China Morning Post reported.

Hong Kong scams involving crypto accounted for much than 50% of the full 3.2 cardinal HKD ($407 million) stolen from metropolis residents successful exertion crimes, according to the authoritative information from the Hong Kong constabulary CyberDefender website. In the erstwhile 4 years, online scammers bagged a akin magnitude of wealth oregon astir 3 cardinal HKD per year.

The full magnitude of exertion crimes successful 2022 resulted successful astir 23,000 reported cases.

Technology transgression figures successful Hong Kong. Source: Hong Kong constabulary CyberDefender website

According to SCMP sources, constabulary witnessed an summation successful the usage of cryptocurrency arsenic a mean for online scams, with fraudsters being capable to fell their identities, transaction travel and last destination. Crypto usage successful online crimes has made the tracking of transgression funds much analyzable for enforcement, 1 insider reportedly said.

Force’s cybersecurity and exertion transgression bureau besides shared immoderate observations astir a emblematic crypto-related scammer, describing specified perpetrators arsenic pretending to beryllium highly experienced successful investing successful crypto assets, precious metals oregon overseas speech products. Such persons often lure victims into installing fraudulent concern applications showing fake transactions and returns, constabulary stated.

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The study comes amid the authorities of Hong Kong becoming progressively engaged with the improvement of cryptocurrency infrastructure, distinguishing its crypto regularisation attack from China’s broad crypto prohibition enforced successful 2021. In February, Hong Kong’s Securities and Futures Commission called for nationalist feedback connected the recently projected licensing authorities for crypto exchanges acceptable to instrumentality effect from June 2023.