An unsolicited WhatsApp message from an unknown number resulted in millions of dollars in losses. A Hong Kong man in his 70s lost more than HK$13 million, equivalent to $1.67 million, after falling victim to a scammer posing as a crypto investment expert from Singapore.
The perpetrator’s modus operandi began with an enticing proposition. The so-called expert introduced a crypto platform promising favorable exchange rates, low transaction fees, and full freedom to withdraw funds at any time. Convinced by the investment expert’s narrative, the victim was guided to set up a digital wallet and purchase Tether (USDT) and Ethereum (ETH).
The Illusion of Profit on a Smartphone Screen
A crucial phase of the scam involved specialized software. The victim was instructed to download an investment app via a direct link sent by the scammer. Once installed, the victim was directed to transfer his newly acquired crypto assets to a third-party wallet address. The scammer assured the victim that the coins served strictly as initial investment capital on their platform.
This was where the psychological manipulation took place. The fake app was programmed to display charts and profit figures that steadily climbed. These fictitious green balances built trust with the victim. Seeing his portfolio continuously surge, the victim grew increasingly confident and continued sending more crypto to the perpetrator’s wallet address.
The trap was uncovered when the victim finally attempted to cash out his funds. The withdrawal system suddenly became inaccessible. The platform repeatedly blocked withdrawal requests with shifting, fabricated excuses. It was at this point that the victim realized the profits he had been monitoring on his smartphone screen were merely an illusion.
Not an Isolated Incident in Hong Kong
The elderly man’s loss is just one of a broader series of financial crimes. The Hong Kong Police Force noted that at least 40 investment scams with a similar modus operandi have been reported to authorities recently.
Combined, total losses from the dozens of victims in these fake investment scams have exceeded HK$50 million. The expanding scale of the crime prompted police to issue an urgent warning. Authorities emphasized that residents should not download investment apps from unknown sources.
Authorities urged the public to verify the legitimacy of any investment platform through official channels before transferring funds. The moment an unsolicited contact sends an unfamiliar app link via instant messaging, that is where the scam begins.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
