Some countries around the world suffered higher financial losses from cryptocurrency scams despite a massive bear market in 2022.
Losses from cryptocurrency scams in Hong Kong totaled HK$1.7 billion ($216.6 million) last year, an increase of 106% over the previous year, according to local police.
The number of cryptocurrency-related scams reported in Hong Kong in 2022 equaled 2,336 cases, an increase of 67% from the 1,397 cases recorded by the police in 2021, the South China Morning Post (SCMP) reported. reported.
Hong Kong scams involving cryptocurrency accounted for more than 50% of the HK$3.2 billion ($407 million) stolen from city residents in tech crimes, according to official data from police website CyberDefender From Hong Kong. In the past four years, online scammers bagged a similar amount of money or around 3 billion Hong Kong dollars a year.
There were nearly 23,000 reported cases of technology-related crime in 2022.
According to SCMP sources, police have witnessed an increase in the use of cryptocurrencies as a means for online scams, with scammers being able to hide their identities, transaction flow, and final destination. A source reportedly said that the use of cryptography in online crime has made tracking criminal funds more difficult for the app.
The Hong Kong Police Force’s Cybersecurity and Technology Crime Bureau also shared some observations about a typical cryptocurrency-related scammer, describing the perpetrators as claiming to be highly experienced in investing in crypto assets, precious metals, or forex products. . These people often lure victims into installing fraudulent investment apps that display fake transactions and returns, police said.
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The report comes amid a growing commitment by the Hong Kong government to the development of cryptocurrency infrastructure, distinguishing its approach to crypto regulation from China’s blanket crypto ban enforced in 2021. In February, the Securities and Exchange Commission and Hong Kong Futures asked for public comment on the new proposal. The licensing regime for cryptocurrency exchanges will come into effect from June 2023.
