58 held over fraud cases that netted HK$51m

Most suspects holders of bank accounts used to launder cash gained from online rackets

Police have arrested 58 people in connection with 53 online deception cases totalling HK$51 million in losses.

Most of the suspects were holders of bank accounts used to collect and launder the scammed money from e-shopping frauds, internet love scams and online employment ruses, according to the force.

Of the 53 cases reported to police in the New Territories South region over the past 16 months, the biggest involved an online romance scam in which a woman lost HK$10 million.

Chief Inspector Chan Ka-ying of the New Territories South regional crime unit said the victim met her “lover” through social media in the fourth quarter of last year and was told he was an investment expert in Singapore.

“After developing a romantic relationship, the woman was lured into buying investment products with high returns,” Chan said. As instructed, the victim transferred HK$10 million in total to over 10 local bank accounts.

She realised it was a scam after she was unable to contact her online “lover” when she wanted to withdraw the money. She then made a police report in December.

Police said the investigations suggested the investments did not exist and the pair never met in person.

Several of the account holders used to collect the money were among the 36 men and 22 women arrested by the newly established New Territories South technology crime unit between April 25 and May 1.

Officers also arrested several members of a money-laundering syndicate that advertised jobs online to lure people looking for part-time work.

Jobseekers were coaxed into opening bank accounts or cryptocurrency e-wallets and told these would be used for investment purposes, according to Chief Inspector Chiew Tsi-huen.

“They were ordered to hand over the account details and then check in at designated hotels where they were guarded by members of the syndicate”.

He said they also had to surrender their mobile phones that were used by the gang to control and access the accounts to collect and launder crime proceeds.

Chiew said the investigation showed those “jobseekers” were paid hundreds of dollars each.

Earlier this year, police arrested about 10 others from the syndicate. Officers are still investigating how much money had been laundered by the gang.

Superintendent Chen Chi-cheong, head of the regional crime unit, urged the public not to hand over or lend their bank accounts to anyone.