Hong Kong residents lost more than $216 million to crypto scams in 2022 – Regulation Bitcoin News
According to the Hong Kong Police, in 2022 there were 2,336 reported crypto-fraud-related cases in which more than $216.6 million was lost. Although losses related to crypto fraud accounted for 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 fraudsters.
Crypto-related fraud accounts for just over 10% of reported tech crimes
Hong Kong residents have reportedly incurred cryptocurrency-related fraud losses totaling $216.6 million (HK$1.7 billion), just over half of the $407.7 million lost to online fraudsters in 2022, a report has said. The more than doubling of crypto-fraud-related losses followed a 67% jump in the number of victims from 1,397 reported cases in 2021 to 2,336 at the end of last year.
However, according to the data reportedly shared by Hong Kong law enforcement, crypto-fraud-related crimes accounted for just over 10% of the nearly 23,000 tech crimes reported in 2022. Although police have had some success in intercepting and blocking wire transfers to fraudsters, an insider quoted in a recent report by the South China Morning Post claimed that fraudsters’ increasing use of crypto is making the task of tracking stolen funds “more difficult.”
According to an unnamed insider, cyber fraudsters’ perceived preference for crypto may help explain why the volume of intercepted funds has fallen to levels last seen in 2019. To counter fraudsters’ growing preference for crypto-related scams, Hong Kong police are said to have issued a notice in February warning residents to be on the lookout for a type of scam targeting animal lovers.
Pet lover scam
According to the South China Morning Post report, the alert was issued after an unnamed woman lost more than $760,000 worth of bitcoins to a scammer posing as a pet lover selling a kitten. The fraudster allegedly convinced the victim to transfer money across 40 transactions before disappearing. In another case, a 63-year-old man allegedly lost more than $1.5 million to a scammer posing as a cryptocurrency expert.
Besides crypto scams, Hong Kong police figures reportedly show that law enforcement had dealt with around “1,884 online investment scams involving HK$926 million [$118 million].” The figures should also show that fraud targeting job seekers grew from 1,063 reported cases in 2021 to 2,884 in 2022.
What are your thoughts on this story? Let us know what you think in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for damages or losses caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
