HK Woman Loses $982K to AI Crypto Scam Amid City-Wide Fraud Surges

A surge in crypto-related fraud cases has prompted fresh warnings from authorities in Hong Kong, following a local woman’s loss of nearly HK$7.7 million (~982K) in a crypto scam involving so-called “AI-driven” trading strategies.

According to a local report, more than 80 online investment fraud cases were recorded in the past week alone, with total losses exceeding HK$80 million (~$10.2 million). Officials say scammers are increasingly using advanced technologies and artificial intelligence to make their schemes appear more credible.

How the scam unfolded

As per details shared by authorities, the victim was contacted on Telegram by a fraudster posing as an investment expert, who promised guaranteed high returns through AI-powered quantitative trading for crypto investments.

Convinced with the pitch, she was then directed to a fake investment platform and instructed to make 17 transfers of USDT and ETH, losing around HK$7.7 million. The scam was uncovered only after her withdrawal requests were repeatedly denied.

Authorities issue warning

The Hong Kong Police Force have warned that scammers are increasingly using buzzwords like “AI trading” and “guaranteed profits” to lure victims. Officials stressed that while cryptocurrencies can seem attractive and a low-risk, high profit investment option, they come with significant risks and market volatility.

Just last month alone, a 66-year-old retiree lost HK$6.6 million to a multi-stage crypto fraud that unfolded over six months. In that incident, scammers similarly posed as investment experts before returning with fake “recovery” offers to extract even more funds.

As the investigation continues, the HK Police are urging the public to remain cautious, avoid trusting unsolicited investment advice, and verify the legitimacy of platforms before transferring funds. They also encouraged local users to use the official CyberDefender platform to assess the risk of potential fraud before committing funds.

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