According to the Hong Kong police, in 2022 there were 2,336 reported cases involving crypto scams in which more than $216.6 million was lost. Although crypto-scam-related losses only made up just over 10% of the nearly 23,000 reported tech crimes, they still accounted for more than half of the $407.7 million lost to online scammers.
Cryptocurrency-related scams make up just over 10% of reported tech crimes
Hong Kong residents reportedly incurred losses from cryptocurrency-related scams totaling $216.6 million ($1.7 billion), just over half of the $407.7 million lost to cryptocurrency scams. scammers online in 2022, according to a report. The more than doubling in losses related to crypto scams followed a 67% increase in the number of victims, from 1,397 cases reported in 2021 to 2,336 at the end of last year.
However, according to data purportedly shared by Hong Kong law enforcement, crypto-scam related crimes made up just over 10% of the nearly 23,000 tech crimes reported in 2022. Although the police have had some success in intercept and block wire transfers to fraudsters, a whistleblower quoted in a recent South China Morning Post report He stated that the increasing use of cryptography by scammers makes the task of tracking down stolen funds “more difficult.”
According to an anonymous tipster, the alleged preference of online scammers for cryptocurrency may help explain why the amount of intercepted funds has fallen to levels last seen in 2019. To counter scammers’ growing preference for related scams With cryptocurrency, Hong Kong police are said to have issued an alert in February warning residents to beware of a type of scam targeting animal lovers.
Pet Lover Scams
According to the South China Morning Post report, the alert was issued after an unidentified woman lost more than $760,000 worth of bitcoins to a scammer posing as a pet lover selling a kitten. The scammer reportedly convinced the victim to transfer funds in 40 transactions before disappearing. In another case, a 63-year-old man is said to have lost more than $1.5 million at the hands of a scammer posing as a cryptocurrency expert.
In addition to crypto scams, Hong Kong police figures show that law enforcement had handled around “1,884 online investment frauds involving HK$926 million ($118 million).” The figures also reportedly show that scams targeting job seekers increased from 1,063 reported cases in 2021 to 2,884 in 2022.
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