Key facts
- Hong Kong police arrested 69 people on Monday.
- The arrests are linked to a syndicate suspected of laundering HK$200 million.
- The laundered funds originated from cross-border investment fraud.
- The fraud affected over 170 victims.
- The operation involved "mule" bank accounts.
Hong Kong police have arrested 69 individuals, aged between 18 and 60, in connection with a syndicate suspected of laundering approximately HK$200 million (US$25.5 million) through cross-border investment fraud. The operation, a joint effort with mainland Chinese authorities, targeted "mule" bank accounts and has impacted over 170 victims.
Authorities highlighted that losses from investment scams in Hong Kong surged by 17% year-on-year to HK$920 million between January and March, a trend that requires increased attention. Senior Inspector Yip Kai-ming of the Anti-Deception Coordination Centre advised that a "red flag" for scams is when an online acquaintance encourages investment.
Police cited an example from May involving an online romance-investment scam where a mainland resident was persuaded to download an investment app and invest in cryptocurrency, gold, and other assets with promises of high returns. The scammers initially paid out around HK$970,000 in fabricated investment returns to build trust.
