Hong Kong police arrested a 67-year-old woman suspected of posing as a potential tenant and swindling two landlords out of HK$4.3 million, or US$510,000.
She allegedly lured them into a fake cryptocurrency investment scheme, which granted a fraud syndicate access to their wallets.
Rent Paid in Advance, Then a Phone with Pre-installed App
Officers from the Western District Crime Squad said the scam began with searching for property listings.
The woman pretended to be a tenant and paid rent in advance to win the landlords' trust. After that, she began talking about what she called a "high-return investment."
Each victim was given a free mobile phone with a pre-installed cryptocurrency app. Police said the app was genuine, but its links had been altered to allow the crime syndicate to secretly access the victims' e-wallets.
One victim had over HK$1 million stolen, the other over HK$3 million. In total, police estimate the stolen amount is HK$4.3 million.
Investigators believe the woman is a key member of the crime syndicate. She was arrested at her home on Monday. She is accused of coercing the two owners into transferring funds before other members helped launder the money.
The fraudster is expected to be charged with obtaining property by deception, with a hearing scheduled for Thursday at Eastern Court. Police have not publicly stated whether they have identified or detained other members of the crime syndicate.
Police Continue Crackdown on Fun Coffee Shop Scam
Since July, Hong Kong police have received 264 reports related to the "Fun Coffee" scam, with an estimated loss of HK$107.5 million. Victims, aged between 32 and 83, claimed to have lost between HK$3,000 to around HK$9.6 million.
On August 4, police arrested six people aged 51 to 64, five women and one man, on suspicion of conspiracy to defraud. A joint operation with Macau police ran from August 1 to 3.
As Cryptopolitan reported in July, a Vietnamese brand involved in coffee industry investments had already been placed on the warning list of Hong Kong's Securities and Futures Commission (SFC).
As reported by local newspaper China Daily, lawmaker Johnny Ng Kit-chong has urged authorities to freeze company funds and crypto assets once regulators detect suspicious transactions.
He added that his department tracks cryptocurrency wallets to help investigators trace lost money. Ng cautioned the public against schemes promising high returns or featuring "investments based on completing certain tasks."
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