Hong Kong authorities have issued a cautionary message regarding the surge in fake banknotes, which has been closely associated with cryptocurrency scams. From January to April, law enforcement confiscated 3,396 counterfeit notes worth HK$2.55 million (US$326,130), a significant rise compared to last year’s 553 notes valued at HK$166,220. The seizure was a result of three major fraud cases linked to cryptocurrencies, resulting in the apprehension of 1,693 “training notes” and 347 low-quality counterfeit bills. These training notes, resembling HK$1,000 bills, lack security features and are clearly marked with the Chinese characters for “practice coupon”, predominantly used for bank staff training.
The suspects exploited these fake notes to deceive victims during cryptocurrency transactions. The scammers often establish fictitious stores or arrange face-to-face meetings to exchange cryptocurrencies for cash. They present bundles of seemingly genuine high-denomination Hong Kong dollar bills, interspersed with “training notes” or “hell notes”. Once the victim transfers their cryptocurrency to a designated electronic wallet, the fraudster fabricates an excuse to depart, disappearing without a trace and leaving the victim with worthless counterfeit bills.
