In a sweeping 17-day operation, dubbed “Flatshore,” Hong Kong police have arrested 301 money mules in connection with extensive internet and phone scams that defrauded local residents of a staggering HK$370 million (US$47.4 million). The crackdown, led by Senior Superintendent Fang Chi-kin of the New Territories South crime unit, targeted fraud syndicates that had ensnared hundreds of unsuspecting victims.
The Operation
Senior Superintendent Fang Chi-kin announced on Wednesday that the arrested individuals—223 men and 78 women—included key members of the fraud syndicates and those who sold their bank accounts for money laundering purposes. These account holders are typically termed as the money mules.
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“These account holders are significant partners of the fraud syndicates, directly participating in criminal activities and swindling hundreds of millions of hard-earned money from Hong Kong residents every year,” Fang said, condemning their actions as “despicable.”
The fraud syndicates employed a variety of scams, including fake-official phone scams, e-shopping fraud, and schemes involving bad cheques. One notable case involved a victim losing HK$79 million to a fake-official phone scam, where the scammer posed as a mainland Chinese law enforcement agent. Victims were coerced into signing “confidentiality agreements” stamped with bogus official seals, believing they were assisting in an official investigation.
The operation resulted in the arrest of individuals from diverse backgrounds, including construction workers, salespeople, waiters, and unemployed persons. Among them was a 23-year-old man linked to at least 80 fake-official phone scams. Superintendent Iu Wing-kan highlighted that half of the victims, who lost a combined HK$17 million, had been contacted by the police.
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The Impact
Despite the police freezing more than HK$3 million in bank accounts involved in the operation flatshore, the fraudsters managed to pocket the remaining HK$367 million. The operation underscores the pervasive threat posed by fraud syndicates, which target people across various social strata. Victims included professionals and students, illustrating that no group is immune to such deception.
Legal Consequences
Senior Superintendent Fang issued a stern warning to those involved in money laundering activities, emphasizing that ignorance is not a viable defense. Those found guilty face severe penalties, including up to 14 years in prison. “Their despicable actions deserve strong condemnation from society,” Fang asserted.
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The Operation Flatshore
The operation “Flatshore” is part of a broader effort by Hong Kong police to combat the rising tide of deception cases. The amount of money swindled from residents surged to HK$640 million in the first five months of this year, a dramatic increase from HK$130 million during the same period in 2023. This alarming trend prompted the police to intensify their crackdown on fraud syndicates.
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Fang urged residents to remain vigilant against various forms of deception, reiterating that mainland law enforcement agencies would never directly contact Hong Kong residents for assistance in investigations. The police continue to investigate and bring to justice those involved in these fraudulent activities.
The success of operation “Flatshore” marks a significant victory for Hong Kong police in their ongoing battle against fraud syndicates. However, the operation also highlights the need for continued public awareness and caution to prevent further victimization. As the investigation progresses, the authorities are committed to dismantling these criminal networks and safeguarding the financial well-being of Hong Kong residents.
