6 Malaysians Arrested In Hong Kong For Involvement In RM34 Million Phone Scam Operation (2024)

The case marks the first time an international syndicate has established bases in Hong Kong, reported South China Morning Post.

The arrests were made last Thursday, 22 August, after officers dismantled the group's four operational centres in Hong Kong.

The suspects, aged between 20 and 67, face charges of conspiracy to defraud, use of false documents, and money laundering. The six Malaysian suspects are all men, while the five local suspects include three women and two men.

According to Supt Dicken Ko Tik of HKPF's cyber security and technology crime bureau, the transnational group had committed over 400 phone scams since April, defrauding victims of more than HKD61 million (about RM34 million).

The syndicate used fake identity documents to purchase and register Hong Kong phone cards. These cards were then used to impersonate customer service employees from legitimate businesses, such as WeChat or TikTok, reported China Press.

Their modus operandi involved informing victims that they had activated paid services. To cancel these services, victims were instructed to transfer a deposit to a designated bank account. The scammers promised to return the deposit after the cancellation, but failed to do so.

Image via China Press

A modem-pool device is a collection of analogue modems and software that convert traditional phone signals into online signals, allowing overseas criminals to use phone cards inserted into these devices to call victims in Hong Kong and perpetrate fraud.

Police found that three Malaysian men had altered information on passports and Hong Kong identity cards to register at least 300 prepaid phone cards using computer software.

The detained Malaysians, who had entered Hong Kong as tourists, earned between HKD10,000 and HKD16,000 (RM5,500 to RM8,900) monthly from the scam.

Image via @hkpoliceforce (X)

Image via @hkpoliceforce (X)

The local suspects also helped transport materials, rent property units, and manage bank accounts to launder the proceeds.

According to China Press, the syndicate shredded used phone cards to eliminate evidence and frequently changed their operating bases.

Police contacted over 1,000 people who received calls from the syndicate and prevented 17 individuals from sending money to the fraudsters.

"Due to the large number of phone cards involved, the police investigation is still ongoing," SCMP quoted Chief Inspector Lee Chun-man as saying.

"We hope to prevent more residents from being deceived."

In September 2021, the Telecommunications (Registration of SIM Cards) Regulation came into effect in Hong Kong, requiring phone users to register their SIM cards with their real names through their telecom providers.

Those who did not register by February last year had their services terminated.

Image via China Press

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