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Hong Kong losses from crypto scams doubled to $217M last year: report

BusinessCryptoHong Kong losses from crypto scams doubled to $217M last year: report
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Despite the massive bear market in 2022, some countries around the world suffered major financial losses from cryptocurrency scams.

According to local police, losses from crypto scams in Hong Kong totaled 1.7 billion Hong Kong dollars ($216.6 million) last year – a 106% increase from a year earlier.

The number of reported crypto-related scams in Hong Kong is set to equal 2,336 cases in 2022, a 67% increase from the 1,397 cases reported by police in 2021, South China Morning Post (SCMP) informed of,

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Hong Kong scams account for more than 50% of the HK$3.2 billion ($407 million) stolen from the city’s residents in technology crimes, according to official statistics from the Hong Kong Police Cyberdefender website. Over the past four years, online scammers Won The same amount or about 3 billion HK$ annually.

Around 23,000 cases of technology-related crimes were reported in 2022.

Technology crime statistics in Hong Kong. Source: Hong Kong Police Cyber ​​Defender website

According to SCMP sources, the police observed a rise in the use of cryptocurrency as a medium for online scams, wherein fraudsters were able to hide their identity, transaction flow and final destination. One insider reportedly said that the use of cryptocurrencies in online crimes has made it more complicated for enforcement to track down criminal funds.

The Cyber ​​Security and Technology Crime Bureau of the Hong Kong Police Force also shared some observations about a specific crypto-related scammer, with such criminals pretending to be highly experienced in investing in crypto assets, precious metals or forex products. described as Police said such persons often lure victims into installing fraudulent investment applications by showing fake transactions and returns.

Connected: Binance Launches Anti-Scam Campaign After Hong Kong Pilot Run

report comes between the government of Hong Kong is getting busier Differentiating its crypto regulation approach from China’s blanket crypto ban implemented in 2021, alongside the development of cryptocurrency infrastructure. In February, the Securities and Futures Commission of Hong Kong called for public opinion The new proposed licensing regime for cryptocurrency exchanges is set to come into effect from June 2023.