Hong Kong police&nbsp;<a style="text-decoration:none" href="https://www.scmp.com/news/hong-kong/law-and-crime/article/3272192/14-year-old-hongkonger-among-4-arrested-over-use-fake-banknotes-swindle-crypto" rel="noopener noreferrer nofollow">arrested</a> four individuals, including a 14-year-old, in connection with a sophisticated scam involving counterfeit banknotes.&nbsp;
According to the force's Commercial Crime Bureau, the scheme has defrauded 12 cryptocurrency owners of HK$11 million (US$1.4 million) since October 2023.
&nbsp;
The arrests, carried out on July 26, mark a crucial step in a broader crackdown that has led to a total of 14 individuals being apprehended in similar cases since last October.&nbsp;
&nbsp;
Chief Inspector Lo Yuen-shan of the Commercial Crime Bureau revealed that the suspects, aged between 14 and 39, face charges of conspiracy to defraud and possession of counterfeit banknotes.
<h2 dir="ltr" id="span-span-how-the-scam-worked-span-span">How the Scam Worked</h2>
The police investigation has exposed a well-organized syndicate, with members assigned specific roles to execute the scam.&nbsp;
&nbsp;
The two primary suspects, believed to be the masterminds, acquired counterfeit banknotes from a storage facility in Mong Kok. They then set up fake cryptocurrency exchange shops to lure victims.
&nbsp;
To entice people, the pair impersonated a well-known cryptocurrency investor with offers above market value. Afterward, they showed the victims the fake banknotes to demonstrate they could easily settle the transaction without handing over any cash.
&nbsp;
They presented stacks of HK$1,000 (US$128) banknotes to potential victims, with only the top and bottom notes being genuine. This deception made the entire stack appear legitimate.
&nbsp;
Transactions were conducted online, preventing victims from closely inspecting the banknotes. Once the cryptocurrency was transferred to the scammers, the assets were quickly moved out of the account, leaving the victims empty-handed.&nbsp;
<h2 dir="ltr" id="span-span-police-warnings-and-investigation-insights-span-span">Police Warnings and Investigation Insights</h2>
Senior Inspector Mak Wai-kwong has issued a warning to young residents about the dangers of becoming involved in such criminal schemes, particularly during the summer holidays.&nbsp;
&nbsp;
The police are concerned about the potential for young people to be recruited into similar scams.&nbsp;
&nbsp;
The tactics employed by the syndicate have been increasingly common in recent fraud cases, highlighting the need for vigilance in the cryptocurrency market.

Hong Kong Police Arrest Four, Including 14-Year-Old, for Counterfeit Crypto Scam

Table of Contents

BSCN

Other articles published on Aug 6, 2024

Solana’s Memecoins and Cardano’s Recent Update Fails to Generate Hype, Why is Algotech Going Up?

Top 10 Altcoins to Transform Your Portfolio: 10x Potential During the Crash

Is It Time to Buy Bitcoin (BTC) and Ethereum (ETH)? QCP Capital Announces What It Expects From Now!

Bitcoin’s Post-Halving Decline Mirrors 2015-2017 Trends with a 20% Drop to $49,000

Sector Experts Make Urgent Call: “FED Should Cut Interest Rate by 75 Basis Points Immediately”

BTC Trading Volume Breaches $1 Billion Amid Market Crash

Join our free newsletter for daily crypto updates!