Hong Kong doctor, lawyer among 665 victims scammed out of HK$780 million by syndicates
- Police arrest 175 people in crackdown on fraud and money-laundering syndicates, with most suspected of holding stooge bank accounts
Some “well-educated professionals” are among 665 Hong Kong residents who lost HK$780 million (US$99.9 million) in different types of deception cases uncovered in a recent police crackdown on fraud and money-laundering syndicates.
Senior Inspector Chu Yuen-tim of the Hong Kong Island regional technology and financial crime unit said on Wednesday that police had arrested 175 suspects in connection with the cases.
Chu said the 16-day operation, code-named “Enterhaze”, ended on Tuesday and mainly targeted stooge account holders who allegedly helped fraud syndicates collect and launder money generated from online scams and telephone deception.
The suspects included a 41-year-old restaurant kitchen worker who was accused of selling his 14 bank accounts to a fraud syndicate over a short period.
Stooge account holders are those who loan or sell their bank accounts to syndicates to collect scammed money and launder crime proceeds in exchange for thousands of Hong Kong dollars, according to the senior inspector.
Chu said investigations revealed that criminals lured residents into loaning or selling their accounts through different online platforms.
Officers posed as sellers during the operation, which led to the arrest of five suspects, she said.
Except for the five, most of the arrestees had loaned or sold their bank accounts.
Acting Chief Inspector Tai Ying-wai of the Hong Kong Island regional crime prevention office condemned the behaviour of the stooge account holders, saying that “their actions help these cold-blooded fraud syndicates steal the hard-earned money of residents”.
The suspects – 108 men and 67 women – were detained on suspicion of money laundering, obtaining property by deception, conspiracy to defraud and inciting others to commit money laundering.
Police said the arrests were linked to 141 reports of deception and money laundering that involved 665 victims.
Senior inspector Chu said the victims, aged from 15 to 89, lost between HK$900 and HK$28 million each.
“Among the victims, there are well-educated professionals and those with high income. They include a doctor, a lawyer, a pharmacist, an investment analyst and a university researcher,” she said.
A 73-year-old retiree suffered the largest single financial loss at HK$28 million – her life savings – after falling victim to an investment scam.
Fraudsters used the lure of “low risk, high returns” and coaxed the woman into investing in stocks through a bogus trading platform with a promise of significant profits, according to the force.
Chu said the woman was lured into transferring the money into designated bank accounts controlled by scammers.
“The victim could have enjoyed a worry-free retirement, but she now faces financial difficulties due to falling into the trap of scammers,” she said.
Police vowed to continue targeting such illegal activities and carry out undercover operations to arrest buyers of stooge accounts.
“Cracking down on these stooge accounts is a crucial step in disrupting the entire fraud industry,” Chu said.
The force reminded the public not to lend or sell their bank accounts to others for transacting cash with unknown sources as they could face money-laundering charges. The offence is punishable by up to 14 years in jail and a HK$5 million fine.
The city recorded a 42.6 per cent increase in all types of deception cases last year with 39,824 reports filed, up from 27,923 in 2022.
Financial losses from deception cases rose by 89 per cent to HK$9.1 billion in 2023, from HK$4.8 billion recorded in the previous year.
