A Group of People Generated $50M via Crypto Scam Using Artificial Intelligence (AI)
The Hong Kong Police arrested a fraud group behind a fake cryptocurrency platform. This group was using AI technology to attract people in the romance scam trap.
Local media reports confirmed that the Hong Kong police arrested 27 people, including 21 men and 6 women, involved in a high-level digital assets fraud activity. The group set up a fake crypto investment platform and used AI-generated images to establish fake romantic relationships with their victims. Over the past year, they defrauded people and generated $50 million.
The Hong Kong police became aware of the scam after many victims reported the incidents they faced. Investigations revealed the scam was large-scale, with significant misuse of AI technology. The investigation is still ongoing to identify any additional suspects or victims.
Professional Scammer Factory
Police authorities explained that the arrested criminal group was operating a cross-border fraud center in a nearly 4,000-foot factory building unit in Hung Hom. This fraud center was similar to the mainland movie “All or Nothing,” with a careful division of labour. The group provided professional training for fraudsters, produced training manuals, and even supplied scripts to gang members. They attracted people through romantic conversations and easily convinced victims to invest in cryptocurrencies on the fake platform. After an in-depth investigation, the police launched an enforcement action code-named “Code Word” on the 9th of this month, successfully busting the group’s cross-border fraud center.
Misuse of AI Technology
It is worth noting that the use of Artificial Intelligence (AI) technology in the romance scam played a vital role, raising concerns about the evolving misuse of AI. While many countries have introduced rules and laws against AI platforms, bad actors continue to exploit AI technology for illegal purposes.
