Scammers used deepfake technology to replace faces with those of attractive women during video calls, deceiving men into investing in cryptocurrencies. According to a report by South China Morning Post (SCMP), the Hong Kong police revealed the scheme.

In October 2023, a criminal syndicate opened an operational center in a 4,000-square-foot industrial building in Hung Hom district, where they began recruiting employees, including university graduates specializing in digital media. The group created fake trading platforms that convinced victims to invest their money in cryptocurrencies.

Scam Scheme

Victims were targeted through social media and online platforms. The syndicate attracted men from Hong Kong, mainland China, Taiwan, India, and Singapore. The total amount of damage reached HK$360 million (approximately $46.3 million).

Authorities arrested 27 people involved in the scam. This marks the first case where local authorities have successfully shut down a group using deepfakes and artificial intelligence to deceive individuals.

Previously Recorded Incidents

Earlier, scammers deceived an 82-year-old pensioner out of $690,000 by creating a realistic deepfake of Elon Musk’s face, which allegedly offered a “profitable investment opportunity.”

AI’s Impact on Cybercrime

In September, CertiK warned that the use of artificial intelligence and deepfakes has extended beyond video and audio, now targeting cryptocurrency wallets as well.