Hong Kong Biggest AI Scam! Fraudsters Deepfake Company Executives and Swindle HK$200m

Hong Kong police recently received a report of an AI technology scam, involving a staggering HK$200 million (approximately USD$26 million). The perpetrators employed DeepFake technology to masquerade as company executives, successfully duping victims out of a substantial sum. It took nearly a week before the victim detected any irregularities.

After the incident came to light, many believed this to be the biggest DeepFake scam in Hong Kong, and it is also the first known case involving multiple-individuals of DeepFake technology. The perpetrator skillfully assumed various roles using this technology, exploiting video meetings to deceptively cultivate trust, ultimately persuading the victim to initiate money transfers.

According to police, the individual who reported this incident works for a subsidiary of a multinational enterprise in Hong Kong. In January, the victim received an email purportedly from the Chief Financial Officer (CFO) of the UK headquarters, saying that the company was planning a confidential transaction and the fund needed to be transferred into to several Hong Kong bank accounts to be used.

At first, the employee dismissed the email and thought it was an ordinary phishing e-mail. Unexpectedly, the sender persistently emphasized the significance of the transaction and arranged a video meeting call.

During the meeting, the deceived employee encountered the CFO of UK headquarters and other executives. They instructed the employee to transfer funds as soon as possible. Trusting their authority, the employee swiftly transferred HK$200 million to the designated accounts.

After five days, the victim sensed something amiss and sought confirmation from the headquarters. Unexpectedly, the UK headquarters responded that no such "confidential deal" existed, revealing that they had indeed fallen victim to a scam.

_{Picture for example}

The investigation found that the "executives" seen by the victim on the video meeting were all imposters made by AI technology. The scammers collected interview videos or other media materials of the executives of the scammed firm through public channels such as YouTube, combined with DeepFake to create their images and voices, and faked a fake video used on the meeting.

The investigation revealed that the "executives" seen by the victim during the video meeting were actually impostors generated using AI technology. The scammers collected interview videos and other media materials of executives from the targeted company through public platforms like YouTube. By leveraging DeepFake technology, they made lifelike images and voices, ultimately creating a deceptive video that was presented during the meeting.

The meeting was brief, lasting only a few minutes, and concluded abruptly. The victim, without actively participating in the discussion, merely observed as the "executives" deliberated the deal and received instructions to proceed with the transfer.

In addition to the employee who reported the case, the fraudster also contacted other employees of the Hong Kong branch.

The police investigation is ongoing, and no suspects have been apprehended thus far. However, the scam itself has ignited a vigorous discussion. While DeepFake technology has been used in scams before, the specific instance of deepfaking multiple individuals is unusual in the context of scams.

The scammers employed video calls to impersonate an entire executive team, significantly enhancing their credibility. Furthermore, the entire fraudulent process unfolded so swiftly that the victims had no time to react or even detect the deception until five days later.

This case in Hong Kong proves that today's advanced technology has also given rise to more and more sophisticated fraud methods. In the near future, AI scams may have an even bigger impact on people, and we as ordinary people have to beware of such scams.

Here are the tips for protecting yourself from DeepFake scam:

• DeepFake videos need to be made in advance, so the scammers can't react to immediate events. If you suspect a potential AI scam, you may ask for an easy pose such as a nod, and observe the reaction.
• Protect your personal information such as facial information on social media and video sites. Use facial authorization with caution.
• Be wary of any requests for remittance.