Investment scam cases in Hong Kong drop 15%, but losses remain high at HK$1.65b

Hong Kong witnessed a 15% decline in investment scam cases during the first half of 2026, yet the losses persisted at an alarming HK$1.65 billion. Senior Superintendent Fanny Kung warned of fraudsters masquerading as representatives of legitimate overseas firms, utilizing fake licenses and AI-generated images to dupe investors.

In a particularly egregious case, a 67-year-old merchant lost HK$48.79 million to a "pig butchering" scam involving fraudulent crypto investments between July last year and January this year. The year saw a total of 2,151 investment scam cases, marking a 14.81% drop from 2,525 cases in the same period last year. However, total losses only decreased by 1.98%, from HK$1.69 billion to HK$1.65 billion.

Online encounters accounted for 97% of the scam cases, leading to losses of HK$1.58 billion, or 93% of the total losses. The "Fun Coffee" scam, which involved 273 victims and resulted in HK$113 million in losses, is a recent example of such fraudulent activities. Hong Kong and Macau police have arrested eight individuals connected to this scheme, which falsely claimed to be a coffee investment enterprise based in Vietnam.

Police have also warned that scammers may use celebrity endorsements and AI-related terminology to establish an air of credibility and attract victims. Influencers like Joseph Lam Chok and Chan Wing-yee have been charged with money laundering in connection with the JPEX fraud, which cost HK$1.6 billion in 2023.

Residents are urged to be cautious when investing in new products, verifying the company's background and ensuring investments are made through licensed platforms. Blockchain expert Louis Li warned against investing in unlicensed crypto exchanges and cautioned that USDT, a popular stablecoin, is not licensed and should raise suspicions.