Cryptocurrency-related scams are on the rise in Hong Kong with people being tricked out of millions of dollars, in what can seem like legitimate deals with fake investment advisors. Just this year, an architect in Hong Kong lost HK$24 million ($3.1 million) when a scammer posing as a fellow architect directed her to a fraudulent cryptocurrency website to make investments trading Tether.

Crypto-related scams reported in Hong Kong surged 67% in 2022, with a reported total of 1,397 cases combined hitting an estimate of HK$1.7 billion ($216 million). Unfortunately, this figure looks to be increasing in 2023 as seen in multiple cases already this year. In February, a woman lost nearly $800,000 worth of cryptocurrency when scammers encouraged her to pay for insurance costs of a nonexistent kitten, and an separate man lost $1.5 million of his inheritance to a scammer in a fake crypto trading website. Furthermore, in April an Italian consultant working in Hong Kong suffered a financial blow of $1.8 million in another crypto scam.

As the scams become more and more sophisticated, users are wise to be extra aware and vigilant of potential scams. The police urge users to be knowledgeable about cryptocurrency and examine the legitimacy of websites before investing funds. They also advise crypto traders to be careful not to fall for offers that appear too good to be true, as these are often too good to be real. Additionally, it is important to ensure that contact with the seller is legitimate, discuss terms of the transaction and double-check all details before proceeding with a deal.



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