Hong Kong authorities have dismantled a sophisticated criminal operation that combined deepfake technology with dating apps to defraud victims across Asia of HK$34 million (US$4.3 million).
The syndicate, operating from two locations in Kowloon Bay, employed AI-powered deepfake technology to create fake dating profiles using artificially generated images of attractive individuals. These profiles were used to establish romantic relationships with unsuspecting victims in Taiwan, Singapore, and Malaysia.
After gaining their targets' trust through online relationships, scammers convinced victims to invest in fraudulent cryptocurrency platforms. While victims initially believed their investments were generating profits, attempts to withdraw funds were blocked by demands for additional taxes and penalties.
"The criminals used face-swapping technology to create convincing profiles, deceiving victims into believing they were interacting with real people," said Superintendent Charles Fung Pui-kei, describing the group's sophisticated methods.
The police operation resulted in 31 arrests and the seizure of HK$100 million (US$12.8 million) in suspected criminal proceeds, including luxury items such as designer handbags and watches.
This case represents a growing trend in what experts call "pig butchering" scams - where criminals cultivate relationships before exploiting victims financially. According to blockchain intelligence firm TRM Labs, these scams extracted over $4.4 billion globally in 2023, with 75% of associated cryptocurrency wallets showing evidence of money laundering activity.
The successful operation marks a major breakthrough in combating technology-enabled romance scams and highlights the increasing sophistication of criminal enterprises using artificial intelligence for fraud.