Hong Kong Finance Manager Loses HK$17.8 Million in Gold and Cryptocurrency Scam
A Hong Kong finance manager fell victim to a scam involving investments in gold and cryptocurrency, resulting in a loss of HK$17.8 million. The scam, carried out through a fraudulent trading platform, lured the victim with an initial “profit” of HK$2.6 million, which turned out to be bait to encourage further investment.
The deception began with an Instagram message from someone claiming to be a former business partner from Singapore. Coaxed into transferring HK$12.5 million into 29 different bank accounts through 45 transactions, the victim was effectively swindled out of her investment. As if that wasn’t enough, she was also convinced to transfer HK$7.9 million into three virtual currency wallets to aid the scammer in a supposed legal lawsuit in Singapore.
The scam only came to light when the victim tried to withdraw HK$1.2 million from her account and was instructed to pay a HK$1 million “administration fee.” Refusing to comply, she soon found herself locked out of the trading website altogether. Further investigation revealed that nine of the bank accounts involved had already been flagged for association with other scams in an anti-fraud database.
The police have emphasized the importance of taking preemptive measures to prevent such fraud. They suggest using tools like the Scameter search engine to verify the legitimacy of accounts or platforms before investing. Unfortunately, in this case, the finance manager did not take these precautions, leading to substantial financial losses.
Last year alone, the city’s police recorded a staggering 250 percent increase in financial losses from online investment fraud, with 5,105 reported cases and a total loss of HK$3.2 billion. This alarming rise underscores the need for heightened awareness and caution when engaging in online financial transactions.
As scams become increasingly sophisticated, it is crucial for individuals to stay vigilant and exercise skepticism, particularly when dealing with large sums of money and unfamiliar platforms. Protecting oneself from such scams requires informed decision-making and thorough research to ensure investments are made in legitimate and secure avenues.
Analyst comment
Negative news. The finance manager lost HK$17.8 million in a gold and cryptocurrency scam. The market may experience a decrease in trust and confidence in online financial transactions, leading to a cautious approach towards investing in unfamiliar platforms.
