How does it work?

A Lottery scam takes advantage of the wish to win substantial lottery prize money.   Fraudsters usually contact  victims by e-mail, telephone or SMS message, falsely claiming that the victim has won a huge cash prize in a domestic or International  lottery, and that he/she only needs to pay an administrative fee, or bank service charge, in order to receive  the prize money remitted to his/her designated local bank account.  To encourage  the victim to pay the administrative fee the fraudster may deposit a cheque, purportedly the prize money, into a bank account on or just before a Saturday. The reason for “depositing the cheque” at this time is it will not be cleared until the following week. The victim, believing the funds have been transferred into his/her bank account, pays the administrative fee to the fraudster. In reality the cheque will be dishonoured, and by the time the victim realises this, the Fraudster will have long disappeared.

What is our advice?.

• If you have not entered a lottery then you can’t expect to win it.
• Do not be greedy;
• When you win a lottery you are not usually required to pay an administration fee.
•  If you have to pay money to collect your “winnings”, then it is highly likely to be a scam;
• Never deposit money into a bank account unless you know the account holder; and
• Report any suspicious emails and details of suspected lottery frauds to the police.

How does it work?

This simple trick is adopted by one or two culprit(s) who persuade the victim, either in the street or over the telephone, into buying a large quantity of purportedly gold products, (such as finger rings, ingots, nuggets or Buddhas etc.) or antiques at a price lower than the market value. The culprit(s) usually claim they have unearthed the items at a construction site where they are working, but they are unable to pawn them because they are illegal immigrants. In order to convince the victim, to buy the gold they will give him/her a sample to value at a reputable source. Needless to say, the sample is genuine, however the remainder of the purchased products are fake and therefore worthless.

What is our advice?

• Only buy valuable items from reputable sources where you will be able to obtain reimbursement if the merchandise is sub-standard;
• Do not be fooled by deals which seem to be too good to be true; and
• If you are offered cheap gold or antiques to buy report it to the police.

How does it work?

This is a simple trick carried out in the street by one or two culprit(s), who approach the victim trying to sell jade bracelets by exaggerating its health giving properties. Needless to say, the bracelet does not provide the alleged heath benefits and is worthless.

What is our advice?

• Do not be tempted by this offer. If you feel unwell, consult a doctor;
• Only buy expensive jewellery from reputable dealers; and
• There is no scientific evidence to support the claim that stones and metal can provide any beneficial health effect.

How does it work?

This is a simple trick carried out in the street by two or three culprit(s), who approach the victim trying to sell herbs / pills / medicine by exaggerating their health giving properties or tempting the victim to buy products as a joint venture in return for potentially huge profits. Needless to say, the herbs turn out to be fake.

What is our advice?

• Do not be tempted by this offer. If you feel unwell, consult a doctor; and
• Only buy herbs etc. from reputable outlets where you will have some recourse against the supplier if the need arises.

How does it work?

This scam usually involves two to four culprits and is a variation to the fake herbs scam. The first culprit approaches the victim, usually on the street, and asks whether the victim can watch over some goods being unloaded. The victim is offered HK$200-$300 for their assistance. If the victim agrees to look after the consignment, a second culprit who pretends to be interested in that particular item, will approach the victim. He tells the victim that he knows of a lucrative market for the goods, where huge profits can be made. He goes on to suggest that he and the victim offer to buy some of the consignment from the first culprit when he returns. When the victim agrees, he parts with his cash to receive a worthless batch of products. Needless to say, the culprits in this scam avoid genuine retailers who are certain to know the true nature of the goods.

What is our advice?

• Do not be tempted by this deal. Ask yourself why the person is willing to include you in such a profitable transaction. They have never met you before and could easily keep all of the 'profit' for themselves;
• Never purchase goods 'sight unseen' or if you have no experience in that particular market concerned; and
• Only buy merchandise of this nature from reputable outlets where you will have some recourse against the supplier if the need arises.

How does it work?

This scam involves two culprits, usually in the proximity of an ATM machine. The first culprit will either withdraw cash from the ATM, or be walking away from the machine when in full view of passers-by, he "accidentally" drops some money on the floor. However, he pretends not to notice this and disappears. The second culprit appears and picks up the "money" placing it quickly into a bag. He asks the passer-by if he wishes to have a share of the cash.

The first culprit returns and accuses the second of stealing the money. In the argument that ensues, the first culprit says that he is going to make a report to police. The second culprit hands his bag over to the victim and asks him to keep hold of it for safekeeping, asking that the victim exchange any jewellery he might have as collateral. When the culprits leave to make their report to police the victim checks the money in the bag to find that it is worthless paper.

What is our advice?

• In agreeing to take of a share in the "money" you are committing THEFT; and
• You should report anyone you see committing an act such as this to the police.

How does it work?

These scams involve two to four culprits. The targeted victims are usually elderly or poorly educated females. The first culprit approaches the victim and asks if he/she has heard of a particular prophet. A second person, who is part of the same gang, emerges to say he has heard of the prophet. The second person then leads the party to meet a third culprit who claims to be a relative of the prophet. The third culprit advises the victim that she possesses an evil spirit (bad luck) at her home and the prophet can help to expel the evil spirit provided she surrenders some valuables / money for a ritual to drive away the evil spirit or bad luck.

Following the ritual, the culprits return the victim’s valuables, which are wrapped in newspaper, claiming that this is the victim's property. However, when the victim later unwraps the package, he/she discovers the bundle only contains worthless items and the valuables are gone.

What is our advice?

• Be suspicious of anyone who approaches you on the street and asks strange questions or behaves in a strange manner;
• Temples are the best place for spiritual blessings;
• Do not put your trust in people you don’t know; and
• Discuss with your family first before making any decision to withdraw money from a  bank to be used in a spiritual  ritual.

 

How does it work?

This deception involves two culprits. The first culprit approaches the victim stating that he wants to exchange some foreign currency. At this juncture, a second culprit appears, claiming to be a bank employee and  he wishes to exchange some  currency with the first culprit at a given rate.

When the second culprit hands over the money to the first culprit, the latter questions the authenticity of the HK banknotes. The second culprit then requests the victim to exchange the foreign currency first, in return for a commission. The victim  does so, only to discover later that the foreign currency he has exchanged has no value.

What is our advice?

• Be suspicious of anyone who approaches you on the street and asks you to exchange foreign currency; 
• Do not be fooled by deals which seem too good to be true; and
• Always change money at a bank or licensed money changer.

How does it work?

This deception usually involves one to two culprits. One of the culprits approaches the victims, usually teenagers, pretending to be a tourist who has lost his wallet and is therefore in some distress. The suspect asks the victim to lend him some money. In return the suspect leaves his mobile phone as collateral. Later, the victim discovers the culprit's mobile phone and contact details to be false. Sometimes the culprit may produce name cards pretending to be reputable persons.

In a slightly different scenario the culprit asks to use the victim's mobile phone to telephone his relative with a view to  arranging the loan of some money. The  second culprit answers the call and then asks to speak to the victim. The second culprit promises to transfer some money into the victim's account if he/she lends some money to the first culprit. The victim does so, but no repayment is later made to the victim's account.

What is our advice?

• Be suspicious of anyone approaching you in the streets asking you to lend money; and
• Never lend money to anyone whom you do not know unless you have established their true identity and  contact details.

How does it work?

It is common practice for timeshare sales representatives to approach customers by making “cold-calls” or by way of street surveys. Potential customers are offered free gifts, coupons or the chance of winning a prize, as way of encouraging them to attend these type of seminars.

During these seminars well-trained sales representatives use high-pressure sales tactics, offering discounts to persuade customers to join the timeshare scheme. Usually the victims are convinced to sign an agreement immediately. These high pressure sales seminars usually last for several hours, many customers eventually sign the agreement to join the scheme through greed, or because they feel too embarrassed to refuse, or are just so tired due to the lengthy sales talk. Customers sign up and either pay the fees in full or by a deposit followed by monthly installments.

What is our advice?

• Do not be greedy;
• Do not join any schemes without thoroughly understanding and reading a contract;
• Make sure you understand and agree to the clauses of any agreement before signing it.  Take it home and read it; and
• Make a report immediately to the police (999) if you are prevented from leaving such seminars.

How does it work?

This scam is normally carried out by a fraudster claiming to be a financial adviser, who uses the Internet or faxed correspondence to find potential victims, whose names are drawn from a variety of sources including trade journals, professional directories, newspapers and commercial libraries.

The Victims are lured to take part in a large financial transaction, which claims to generate lucrative returns. When the victims express interest, they are shown bogus banking guarantees, promissory bank notes or certificates of deposit, as a security for the investment principal.

Eventually the victims are required to invest funds, upfront (advance fee), to a nominated account as “security” or as “a sign of good faith” or as a “non-refundable deposit”. Once the payment is made, the fraudster disappears with the proceeds.

What is our advice?

• Do not be greedy;
• Do not respond to any unsolicited e-mails, which entice you to participate in some highly lucrative investment projects;
• Be aware if an investment project sounds too good to be true; and
• If in doubt, contact the police immediately.

How does it work?

This scam involves unscrupulous suppliers who, use a courier to deliver unsolicited / unordered office equipment to schools or companies, even though no purchase order has been placed. The schools or companies receive the goods without verifying the existence of a purchase order, and acknowledge receipt by signing the invoice / receipt. The unscrupulous suppliers refuse to accept returned goods and repeatedly press for payment. The suppliers use the acknowledged invoice as grounds to urge for payment often resorting to legal action. These scams are very problematic BUT can be avoided.

What is our advice?

• NEVER accept or sign for any goods, which your school or company has NOT ordered.  IF in doubt, refuse to accept the goods.  They could always be delivered at a later date;
•  In case of any threats, report the matter to the police immediately;
• If unordered goods have been acknowledged, leave them intact, send a registered letter  to the sender requesting the return of the goods and stating your refusal to pay on the grounds that the items had not been ordered. Request the collection of goods by the supplier within a reasonable period of time; and
• Your school or company must establish a  procurement system  including  guidelines on how to receive and what would be done to accept the delivery of goods. Explain these procedures and guidelines  to your staff.  

How does it work?

Nigerian / "4-1-9" fraud is so named, as the vast majority of the syndicates came from Nigeria. It is known internationally as "4-1-9" fraud after the section of the Nigerian Penal Code, which addresses fraud schemes. Swindlers claim themselves to be high-ranking "officials" representing a foreign government or agency in West Africa. They state that they are in charge of funds from a previous regime, which they need to launder by transferring it to a foreign account. A positive response to the solicitation is followed by excuses why the funds cannot be remitted immediately. Eventually, the victim is required to provide an advance fee for various taxes, fees or bribes to facilitate the processing and remittance of the alleged funds. When the swindlers receive the money, inevitably the victims lose contact with the suspects; 

What is our advice?

• Do not be greedy;
• Apply common sense to all unsolicited emails.  If someone was in possession of large sums of money why would they be prepared to share the money with a stranger;
• Do not respond to unsolicited e-mails which ask you to participate in allegedly lucrative investment projects;
• Beware of deals that sound too good to be true; and
• If in doubt, contact and or refer the case to the  police immediately.

How does it work?

To attract and lure victims into investment transactions, fraudsters generally use free investment seminars they organized as bait or they approach victims they picked at random. Subsequently, the fraudsters will ask the investors to deposit money in an account and sign documents authorizing a third party to invest on their behalf. However, the agents do not invest in the investors’ interest. They frequently make multiple transactions in which they charge commission each time. The victims eventually find themselves losing all their capital within the transactions because of investment losses and commission deducted. The Police suspect that fraudsters use such modus operandi in Loco London gold transactions to squeeze commission out of the victims.

What is our advice?

• seek expert advice from professionals before buying complicated investment products；
• make transactions at selected reputable financial companies or banks;
• apprehend all the terms and details on any agreements, authorization documents or contracts if you are going to sign them；
• never disclose the online user login name and password to anyone；
• check immediately all the transaction records upon receipt of accounts’ statements. If any suspicious or unauthorised transaction is found, make enquiries with the relevant financial company or bank as soon as possible.

How does it work?

The culprits in these cases approach their victims on the street or advertise via a shelf company with promises of lucrative contracts if they are willing to pay an up front fee for a portfolio or training course. The victims often part with substantial sums of money for courses or portfolios, which never materialise. The culprits carefully protect themselves by asking the victims to sign legally binding documents, which essentially tie them to the company concerned. In many cases, the victims discover that in addition to having paid for the initial portfolio or course they still owe the company money.

What is our advice?

• Be suspicious of approaches in the street;
• Do not go alone to an agency office. If you are under 18 years of age always have a parent or guardian accompany you. Regardless of age, it is always a good idea to have a friend with you who can corroborate any evidence that the company has misrepresented itself;
• Always read every part of a contract before you sign it.  Make sure you understand every aspect of the  contract;
• Do not pay any fees up front, as this normally indicates something suspicious;
• Be suspicious when promised unreasonably high remuneration for modelling jobs;
• Always ask for references and check these out; and
• Be alert when dissuaded from asking your family or friends for advice.

How does it work?

The scam here involves the culprit calling the victim by telephone and assuming the identity of one of the victim's relatives, friends or business associates. The culprit claims that he/she is experiencing financial difficulties and in need of money. The victim is asked to deposit or transfer money into a designated bank account provided by the culprit. The victim subsequently discovers the call to be bogus. The police investigation reveals that the culprit opened the bank account by using either a bogus or stolen ID card. Alternatively, the account was opened by someone other than the fraudster.

What is our advice?

• Make up a code word, (for family members only) to be used in emergencies;
• Tell the relative, friend or business you will call them back on their known number to verify the story;
• Do not transfer any money under any circumstances; and
• Make a report to police if you suspect the call to be bogus.

How does it work?

Multilevel marketing scams are also known as Pyramid Schemes. They are, occasionally, reported in the newspapers, but always after they have collapsed, leaving many people with financial losses.

A common scam involves the “chain letter”, which promises the recipient huge returns on a small investment. Typically the scam requires the victim to forward the letter to several people together with a small amount of money to each. Sometimes the letter warning that something bad will happen if the chain is broken. In theory, the more people who join the pyramid scheme, the more you will receive on your investment when your name comes to the top of the pyramid. However, it is simply impossible for everyone to receive their own contributions back - there is not enough people to ensure that this will happen. Some people, who joined the scheme early may get a return on their “investment” but the vast majority end up losing their money.

A variation on this scheme is the Pyramid Investment Scheme. Here, “members” are invited to pay a joining fee to recruit new members, who will also pay a joining fee. The member thus becomes a recruiter and in theory gets a portion of the joining fee from every new recruit and so on. Early members may get some dividends but when the pyramid crashes, which it will ulitimately do, everybody except the person at the top loses.

What is our advice?

• Do not  get involved in pyramid scams, they do not work and you will end up losing money;
• Quick money is not so easy to make;
• Be aware if something which sounds too good to be true; and
• Ignore pleas, persuasion and implied threats.

How does it work?

With advances in technology the options available to criminals have increased dramatically. This is especially so in the area of credit card fraud. Billions of US dollars are lost annually world-wide to credit card crime.

Nowadays it is not necessary for criminals to have your card in their possession in order to access your account. Therefore It is essential, personal data and credit card data are well protected. This means you should be vigilant when using your card. Ensure that it is not "skimmed" (electronically swiped by an unauthorized magnetic code reader, thereby storing the credit card data for unauthorized use later), or copied in any other way. Always ask vendors to complete card transactions in front of you.

Armed with little more than your personal data some criminals will apply to issuers for credit cards in your name. It is unlikely you will know anything about the fraud until it is too late - that might be when you yourself want credit and are refused. It is important, therefore, to protect your mailbox (always a rich source of personal data), and to be careful what you subscribe to - particularly online. Beware also the bogus data collector, posing either as a man from an utility company, a bank, an electoral registrar, or as a census and statistics officer. Here be careful what information you give over the phone, as callers can be hard to verify, and might catch you unawares.

The most common form of card fraud is the use of a stolen card. Stolen cards are generally used immediately after their theft, as the culprit knows he/she doesn't have long before the card is reported as being lost and is cancelled.

Most cards are stolen from the post, or from bags and jackets. Some thieves, however, pose as bar staff to obtain credit cards. Better equipped and more professional gangs will steal a card, skim or copy it, then replicate it quickly for use. The original card is returned to the owner, usually before he/she realises it is missing. Several cases have occurred when casual acquaintances or sex workers have added a drug to the victim’s drink.

Take good care of the card, and check your account statement regularly. Always report to the issuing company the moment you become aware of any loss.

There are a variety of methods that criminals use to obtain card details and ATM PINs ranging from simply looking over the victim’s shoulder to installing pin-hole cameras in the ATM machine. Stolen data is then used to replicate the ATM card. The alternative is victim's ATM card is stolen. Thereafter the target bank account is drained of cash. Take care, when punching your PIN number into an ATM. Cover your hands if possible, and guard against people looking over your shoulder.

What is our advice?

• Never disclose your ATM PIN to anyone;
• Take care to hide your PIN from prying eyes when using an ATM machine or other device;
• Take care of your personal data. Do not hand it over without first verifying the recipient, and the use to which it will be put;
• Secure your mail box; and Report any compromise or theft of your credit cards/ATM cards without delay to both the card issuer and police.

How does it work?

For “Long Firm Fraud”, the fraudsters would set up business and buy goods from suppliers with intent to evade payment.  Usually, the fraudsters would recruit stooges as the responsible person and director of the company as well as some innocent staff as salesmen for soliciting business with suppliers.  Initially, the deals would be settled in cash or cash cheque in order to gain trust from the suppliers.  As the business cooperation grows, the fraudsters would place larger orders and settled them by post-dated cheques.  Moreover, they would request the goods to be delivered to warehouses or public car parks instead of the company premises.  Finally, they will close down the business and fled away with the goods before the due date of the post-dated cheques.

What is our advice?

• All marketable commodities can be the targets of the fraudsters, especially those with high liquidity and easily handled.
• To know your customers by conducting research on their company background and to avoid granting too loose credit control for new customers.
• To retain all the transaction records and contact details of your business partners for police investigation (if required)