Some countries around the world suffered higher financial losses from cryptocurrency-related scams, despite the huge bear market of 2022.
Losses from cryptocurrency scams in Hong Kong totaled HK$1.7 billion ($216.6 million) last year, up 106% from the previous year, according to local police.
The number of reported cryptocurrency-related scams in Hong Kong in 2022 amounted to 2,336 cases, up 67% from the 1,397 cases recorded by the police in 2021, the South China Morning Post (SCMP) reported.
Cryptocurrency-related scams in Hong Kong accounted for more than 50% of the Hong Kong $3.2 billion ($407 million) stolen from city residents in tech crimes, according to official data from the Hong Kong police website CyberDefender. . In the past four years, online scammers have raked in a similar amount of money, about HK$3 billion a year.
In 2022, almost 23,000 cases of technology-related crimes were reported.
According to SCMP sources, police have witnessed an increase in the use of cryptocurrencies as a means for online scams, as scammers can hide their identities, transaction flow, and final destination. A whistleblower claimed that the use of cryptocurrency in online crime has made it difficult to trace criminal funds.
The Hong Kong Police Cybersecurity and Technology Crime Bureau also shared some observations about a typical cryptocurrency scammer, describing these criminals as people who pretend to have a lot of experience investing in crypto assets, precious metals, or currency products. These individuals often trick victims into installing fraudulent investment apps that display false transactions and returns, police said.
The report comes at a time when ehe Hong Kong government is increasingly committed to the development of cryptocurrency infrastructure, distinguishing its approach to regulating cryptocurrencies from China’s blanket ban on cryptocurrencies in 2021. In February, the Hong Kong Securities and Futures Commission opened a popular consultation on the proposed new licensing regime for cryptocurrency exchanges, which will enter into force in June 2023.
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