Hong Kong Police Bust AI-Driven Dating Scam Using Crypto Payments

In Brief:

Over 500 arrests made in "Strategic Attack" operation targeting tech fraud and money laundering.

Scammers used AI face-swapping and crypto payments to exploit victims through fake online stores.

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Hong Kong police have dismantled a major tech-enabled scam operation that used AI and crypto to defraud victims on dating platforms. The bust was part of an enforcement sweep codenamed “Strategic Attack,” conducted from April 7 to 17, which led to the arrest of 503 individuals involved in 404 fraud and cybercrime cases totaling 1.56 billion yuan.

Among the highlights of the operation was the takedown of a fraud center in an industrial building in Tsuen Wan. Authorities arrested 11 suspects—some linked to triad groups—who allegedly used artificial intelligence for face-swapping and scripted romantic dialogues to impersonate “young and successful women” on dating apps.

Once trust was gained, victims were persuaded to open “online stores” on fraudulent e-commerce platforms. These platforms mimicked legitimate marketplaces, using fabricated website traffic and fake orders. Victims were required to "top up" the stores using virtual currencies like Bitcoin, falling deeper into the scam loop.

Investigators say this sophisticated scheme marked a worrying evolution in the use of AI to manipulate identity and trust at scale. It also highlighted growing concerns about the abuse of virtual assets in illicit activities across Asia.

The case underscores the urgent need for stronger digital literacy, platform accountability, and cross-border crypto regulation as AI-driven scams become increasingly common and hard to detect.

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