Vigilance is the best way to beat the scammers

The number of arrests and estimates on losses continue to mount as police investigate Hong Kong’s largest alleged financial fraud involving cryptocurrency platform JPEX. While authorities are also stepping up enforcement and improving regulations to fight scams, public vigilance is still essential to fight rapidly evolving online crime.

Last Thursday, police arrested six more suspects, bringing to 26 the number of people detained in connection with the JPEX investigation that now shows HK$1.55 billion in losses linked to more than 2,400 complaints against the company, which has denied the claims.

Admitting the numbers are likely to rise, Secretary for Security Chris Tang Ping-keung said police were doing their best to hunt down the alleged ringleaders. Financial Secretary Paul Chan Mo-po has called for “a proper regulatory framework” for the next generation of the internet and blockchain technology. He said “balanced regulations” should encourage responsible and sustainable development of the sector with a framework that protects investors, fosters stability and prevents money laundering.

The JPEX case came to light last month with a Securities and Futures Commission warning that the unlicensed exchange had “suspicious features” and spread misleading information about its licensing status. The police cybersecurity and technology crime bureau separately warned about a 50 per cent surge in technology-related crimes in the first six months of 2023 compared to the same period last year.

There are understandable concerns that more could have been done sooner to protect investors. The commission said it was committed to providing “transparent and clear” information. Security chief Tang pledged that the force would work closely with the statutory body to strengthen education on safe trading practices.

But if such advice is not heeded, scammers will continue to have the upper hand. Crime-fighting tools are often outpaced by criminals who find the easiest prey among those taking the fewest precautions.

The current investigation is a timely reminder that cybersecurity is a team effort.