Three people, including two suspected organisers and a foreign domestic worker allegedly used as an account holder, have been arrested after Hong Kong Police uncovered what investigators describe as an organised online fraud and money laundering operation linked to 91 reported cases and more than HK$250,000 in losses. The East Kowloon Regional Technology and Financial Crime Unit said the group had allegedly been operating since at least August 2025, targeting online shoppers through a series of low-value deposit scams conducted across social media platforms.
Police believe the operation was more sophisticated than a typical online marketplace scam. Investigators said the syndicate maintained dedicated roles for sourcing product images, publishing advertisements, communicating with potential victims and managing payment accounts. Core members are also suspected of regularly changing locations to avoid detection.
Small-deposit scams spread across online marketplaces
According to investigators, the syndicate advertised a range of products and services through social media, presenting itself as vehicle dealers, retailers or service providers. Victims were encouraged to place small deposits through the Faster Payment System (FPS), with the balance supposedly payable at a later stage. Once payment was received, communication ceased and the promised goods or services never materialised.
The products advertised extended well beyond a single category. Police said the group offered electric vehicle “one-for-one replacement” quotas, second-hand vehicles, automotive accessories, gaming cards and household appliances. In some cases, the suspects also claimed to provide taxi rental services or application-related services. Investigators noted that the use of relatively small deposits, often only a few thousand Hong Kong dollars, appeared designed to lower victims’ suspicions and increase participation.
While electric vehicle quotas attracted public attention, authorities indicated they represented only one element of the broader scheme. Media reports citing police said more than 20 cases were linked specifically to purported EV quota sales, suggesting the scam capitalised on sustained consumer demand in the city’s growing electric vehicle market.
Anonymous payment accounts emerge as money-laundering channel
Beyond the fraud allegations, the investigation highlights concerns over the use of anonymous or inadequately verified digital payment accounts to receive and move illicit funds. Police allege the syndicate systematically collected victims’ payments through stored-value payment accounts before converting proceeds into cash through a variety of methods.
One laundering method involved purchasing large quantities of supermarket cash vouchers and reselling them at a discount. Another involved repeatedly renting portable charging devices and reclaiming refundable deposits in cash, effectively converting account balances into physical currency. Investigators estimate the group laundered approximately HK$110,000 in criminal proceeds per month.
Police said the operation also revealed the continuing use of mule accounts. The foreign domestic worker arrested in the case is believed to have acted as an account holder rather than a principal organiser. Authorities said criminal groups increasingly recruit individuals unfamiliar with local laws to provide access to financial or payment accounts in exchange for relatively small payments.
During the operation, officers seized mobile phones, SIM cards, a memory card and more than 50 cash vouchers believed to be connected to the scheme. The three suspects remain under investigation for conspiracy to defraud and money laundering offences, and police have indicated that further arrests remain possible.
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