Hong Kong police have issued a warning over the rise in counterfeit banknotes, with many cases linked to cryptocurrency scams. Between January and April, authorities seized 3,396 fake notes valued at HK$2.55 million (US$326,130), a significant increase from last year’s 553 notes worth HK$166,220. Three major cryptocurrency-related fraud cases led to the confiscation of 1,693 “training notes” and 347 low-quality fake notes. These training notes are said to be used mainly to train bank staff; they resemble HK$1,000 bills but lack security features and are marked with “practice coupon” in Chinese characters.
Hong Kong Police Warn of Spike in Counterfeit Banknotes Used in Cryptocurrency Scams
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The suspects used these counterfeit notes to defraud victims in cryptocurrency transactions. Fraudsters often set up fake shops or arrange in-person meetings to exchange cryptocurrency for cash. They present stacks of what appear to be high-denomination Hong Kong dollar bills, with “training notes” or “hell notes” hidden among genuine ones. Once the victim transfers their cryptocurrency to a designated e-wallet, the scammer makes an excuse to leave and disappears, leaving the victim with worthless counterfeit notes.
