Multinational Company Loses HK$200 Million in Deepfake Scam: Hong Kong Police Investigation

In a shocking turn of events, a multinational company in Hong Kong fell victim to a deepfake scam, resulting in a loss of HK$200 million (US$25.6 million). The scam involved employees at the company’s Hong Kong branch being deceived by deepfake technology, with one incident even featuring a digitally recreated version of the chief financial officer ordering money transfers in a video conference call.

The use of deepfake technology in this scam is particularly alarming, as it allowed scammers to create convincing representations of the meeting’s participants, all of whom were fake except for the victim. The scammers utilized publicly available video and audio footage to create these fake personas, making it difficult for the targeted employee to discern the deception.

Acting senior superintendent Baron Chan Shun-ching highlighted the unprecedented nature of this case in Hong Kong, emphasizing that the scammers were able to generate realistic versions of the targeted individuals that looked and sounded like the actual people. This level of sophistication in deepfake technology is concerning and underscores the need for increased awareness and vigilance against such scams.

The employee who fell victim to the scam made 15 transfers totaling HK$200 million to five Hong Kong bank accounts, following instructions given during the fraudulent video conference. The entire episode lasted about a week before the employee realized it was a scam upon contacting the company’s headquarters.

Police are currently investigating the incident, but no arrests have been made yet. They are urging the public to be cautious and aware of the capabilities of scammers using deepfake technology in new ways. Senior Inspector Tyler Chan Chi-wing advised individuals to verify the authenticity of individuals on video calls by asking them to move their head, posing questions to determine their authenticity, and being immediately suspicious if money is requested.

In response to this incident, police are expanding their alert system to cover the Faster Payment System (FPS) to warn users about transferring money to accounts linked to scams. This initiative aims to protect individuals from falling victim to similar fraudulent schemes in the future.

The use of deepfake technology in scams is a concerning trend that highlights the evolving tactics of cybercriminals. It serves as a reminder for individuals and organizations to remain vigilant and adopt measures to verify the authenticity of communications, especially when it involves financial transactions. Stay informed, stay cautious, and stay safe in the digital age.