Malaysian scammers use fake IDs to register SIMs, scam Hong Kongers out of HK$61 million, 11 arrested

August 24, 2024 – (Hong Kong) Hong Kong police have successfully busted a transnational criminal syndicate based in Malaysia that was involved in a large-scale telecommunications fraud that defrauded locals of HK$61 million. The syndicate, which is adept at exploiting the real-name registration system for SIM cards, registered at least 300 SIM cards that were then used to orchestrate scams in the city.

The fraudsters, six of whom are Malaysian men, were caught by police after an intensive investigation. They were found operating from various bases in Hong Kong, using devices known as “SIM boxes” to send bulk messages and carry out their fraudulent operations. Police seized a vast array of equipment, including more than 80,000 SIM cards and numerous “SIM boxes”.

The criminals used sophisticated techniques to alter identity documents and passport images, allowing them to bypass the strict SIM card registration processes. By altering their own passports and overlaying their images on the Hong Kong ID cards of others, they were able to register prepaid SIM cards under false identities. These SIM cards were then used to make calls within Hong Kong without displaying the international access code “+852”, thereby lowering the vigilance of potential victims.

Dicken Ko, a senior inspector with the Cyber ​​Security and Technology Crime Bureau, said at a press conference this afternoon that criminals used fake ID documents to register prepaid SIM cards online. Through investigation, it was discovered that from May to August this year, three Malaysian men used computer software to alter their passport photos and illegally obtain Hong Kong ID images, for example by changing their passport numbers and superimposing their photos on other people’s Hong Kong IDs. They then bypassed Hong Kong’s real name registration system for SIM cards and successfully registered at least 300 SIM cards with various local telecom companies. These SIM cards made calls within Hong Kong without displaying the “+852” prefix, lowering residents’ vigilance.

Authorities have charged six Malaysian men with conspiracy to defraud and using false documents. Their case is scheduled for a preliminary hearing next Monday at the Eastern Magistrates’ Courts. The remaining five suspects, made up of local men and women, have been released on bail and must report to police by the end of September.

This operation marks the first time that a foreign criminal group has set up operational bases in Hong Kong to carry out a phone scam. The case highlights the increasing sophistication of transnational criminal syndicates and the ongoing challenges faced by local law enforcement agencies.

Since April this year, police have detected over 400 cases of fraud linked to this particular syndicate, underlining the high level of organisation and the wide impact of their activities.

In light of these events, the Hong Kong police issued a stern warning to the public, advising vigilance against such scams. They stressed the importance of verifying the authenticity of service requests and the source of all communications demanding financial transactions. The police also reminded the public that knowingly selling SIM cards for illegal use or assisting in such activities may result in serious legal consequences under Hong Kong law.