Businessman Defrauded of $400,000 in Tether (USDT) in Hong Kong
Hong Kong is seeing an uptick in cryptocurrency crimes, with the latest incident involving $400,000 in Tether (USDT). Three individuals were arrested for defrauding a businessman of the crypto in Mong Kok. Police seized more than 11,000 counterfeit bank notes during a recent raid.
Crypto Crimes are on the Rise
This case is just one of several that show the security issues that can arise with cryptocurrency usage. Chainalysis head of policy for APAC, Chengyi Ong, stated that crypto involvement in cases is rising, ranging from fraud and narcotics to scams and cybercrime. Crypto is becoming more prevalent in various crime types, so consumers must be aware of the security threat.
Ong stated further that progress is being made in educating law enforcement about the usage of cryptocurrency and crime, but there is still more that needs to be done. According to Ong, crypto knowledge needs to become mainstream, along with training throughout law enforcement so officials know how to work on cases involving the currency type.
Another Recent Crypto Case in Hong Kong
The recent defrauding of Tether is similar to a case that took place in May when three crypto exchange staff were arrested for stealing $128,000 in USDT to Hong Kong Dollar in Mong Kok. The scammers were able to trick the victim by showing a stack of fake cash known as ‘hell money,’ which is printed on joss paper.
Both cases remain a mystery when it comes to why the victims were exchanging large sums of money in Mong Kok offices. This type of exchange is popular with individuals who are from Mainland China as they wish to move money out of the country. China has strict limits on how much money can be moved abroad.
The incidents in Hong Kong show how cryptocurrency and real-world crime in the region are converging due to hacks, scams, and fraudulent behavior. Criminals are using cryptocurrency however they can to their advantage. Just a few weeks ago, two women were arrested for kidnapping a small child and demanding a ransom of $660,000 in USDT.
Additional incidents can be more brutal, such as when a young crypto trader was brought to a Hung Hom hotel and beaten with baseball bats just to take $23,000 in crypto earnings. It seems that those who live in Hong Kong need to be vigilant when it comes to using cryptocurrency or involving themselves in work related to the currency type.
How to Stay Safe When Using Cryptocurrency
Consumers who use cryptocurrency should be aware of security measures and how to protect accounts. Cryptocurrency is often used for online shopping, currency exchanges, or online casino games. It is common for consumers to utilize Bitcoin, Litecoin, Tether, Ripple, and other cryptocurrency methods to play slots and table games or complete standard online transactions.
When using the currency type, consumers must know how to add extra layers of protection, such as strong passwords or two-factor authentication. These simple steps can add more protection to your account and ensure that the information and the currency are protected.
Make passwords long and complex, but remember to note them and keep the information in a secure location. Use two-factor authentication, so that if your account is hacked, the individuals still cannot access your cryptocurrency.
Use only secure wallets to protect your cryptocurrency further. You want to select a non-custodial or hardware wallet that gives you complete control of private keys. Do not share this information with anyone.
It’s also a good idea to secure the seed phrase. The seed phrase is what is needed to access a crypto wallet. The unique code can be split and stored in several locations or encrypted and stored in a password manager.
Consumers should also be aware of scams and avoid any fake websites or software. Be cautious of crypto-related email files, and never complete a cryptocurrency transaction on public wi-fi or a public device.
If consumers take the proper precautions, there will be minimal, if not zero, issues with using cryptocurrency. Methods such as Tether, Bitcoin, and Bitcoin Cash are safe and secure but can be thwarted by criminals. Understanding secondary security measures helps protect cryptocurrency accounts from hacking or fraud.