Explainer | Deepfakes, crypto hoax, phishing and love scams: how Hongkongers paid HK$9.18 bn to fraud

Hong Kong, an international financial centre with a wealthy population, has been prone to fraud and scams, with cases and monetary losses skyrocketing to record levels last year.

These crimes have not only turned into a growing epidemic but are also evolving, helped by technological innovations and a rapid increase in the scale and volume of organised crime globally.

As the city’s regulators, law enforcement officials and banks rolled out multiple measures and campaigns to fight deception schemes, individuals and companies must also gain knowledge of the topic to protect themselves.

Here, we cover the basic definitions and types of scams, some steps for response, the latest cases in Hong Kong and other Asian jurisdictions, and further resources.

What are fraud and scams?

While the terms fraud and scam are often used interchangeably, they refer to different forms of deception. Fraud involves unauthorised access to personal information, such as credit card or bank account numbers, through hacking or old-fashioned pickpocketing. Scams trick people into providing personal information via deceptive phishing emails, phone calls and social media accounts.

In short, fraudsters rely on illegal access, while scammers use psychological manipulation.