Some Common Covid 19 Scams
Supply scams: Fraudsters use robocalls and online resources like fake websites, social media accounts, and email addresses and claim to sell medical products (e.g. surgical masks or sanitizers etc.) which are in high demand.
The fraudsters would urgently require customers to transfer money into their designated bank account for the purchase of the medical products which are in short supply but never deliver the products to the customers.
Website and App scams: Fraudsters would create and manipulate websites and mobile apps to track the spread of or to provide updates on COVID-19 to insert malware that will compromise users’ devices and personal information.
Investment scams: Fraudsters would offer online promotions (like research reports) on various E-platforms, and claim that the medical supplies or the companies which produce or supply those medical products will dramatically increase in value as a result.
Victims are tricked into making payments to the designated account of the fraudsters, and the fraudsters would transfer the payment out of the account as soon as possible.
Report the case to Hong Kong Police/ Enforcement Agency
In case of such scam or fraud, victims should report the case to the Hong Kong Police and the Police / Enforcement Agency of their origin immediately.
Hong Kong Police may issue a “no consent” letter to the bank, directing the bank that the Hong Kong Police do not consent to the dealings of the account which has received the payment. The bank would usually suspend the transactions in the bank account. But the victims have no control over the police as to whether they would issue such ‘no consent’ letter or not and when the account may be suspended or re-opened.
The victims should seek legal assistance for liaison and communications with the Hong Kong police.
As the fraudsters would try to arrange payment out of the account as soon as possible, victims should also consider whether injunction proceedings should be commenced in the Hong Kong Court to freeze the assets of the fraudsters.
Typical factors to consider before taking out Injunction Proceedings in Hong Kong:
1) The amount of money defrauded
2) The estimated amount of money left in the bank account in question. The longer the time the victim reports the matter to enforcement agency, the less likely there is still money in the bank account.
3) Whether the fraudster is a company in Hong Kong and whether it has any connection with Hong Kong
4) Whether the fraudster has any known asset within or outside Hong Kong.
Injunction proceedings are usually required to be taken out on an urgent basis, and large amount of legal costs are involved. But there may not be any money left in the bank account in question as the fraudster could still easily transfer out the money from the account before it is frozen. Victims should therefore evaluate the benefits and costs for taking out injunction proceedings to mitigate their losses in case of COVID-19 scams or fraud.
For legal advice or services on assets recovery from email scam or cyber fraud, please contact CHOW & CHEUNG, Hong Kong Solicitors & Notary Public. [Tel: +852 2856 3799 Email: cac@ccsn.hk]
www.ccsn.hk
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