Hong Kong Cybercrime Money Recovery: A Victim’s Guide to Filing a Police Complaint
- Anna Lau
- May 10, 2021
- 5 min read
Updated: Mar 3
This article is co-authored by Joshua Chu from ONC Lawyers
“Justice without force is powerless; force without justice is tyrannical.” - Blaise Pascal
Introduction to Hong Kong Cybercrime Money Recovery
Most people upon the realization that they are the victims of a cyber-fraud will panic, especially those attempting Hong Kong cybercrime money recovery for the first time.
Question arises as to whether they should (i) contact the recipient banks, (ii) the police or (ii) get a lawyer to obtain an injunction.
Whilst all of the above are necessary steps to asset recovery, it is crucial for victims to prioritise their action.
Importance of Police Freeze in Hong Kong Cybercrime Money Recovery
Contacting the recipient bank without any court order will achieve little. The usual response that many victims will get is that in the absence of a Court Order, the bank will have to follow their client’s (e.g. the perpetrators) banking instructions.
Whilst to an extent is true, it should be noted that an administrative freeze can nevertheless be triggered when a bank is informed of Anti-Money Laundering (AML) risk (which can be reinforced with a police report number noting that the proceeds now in the hands of the bank is potentially derived from a crime).
This scenario is frequently seen in Hong Kong cybercrime money recovery cases, as illustrated in Interush Limited v Commissioner of Police, HCAL167/2014 where the learned Justice observed that whilst a police action (in that case a JIFU “no consent” letter) will not operate to freeze the suspicious property, in practice, financial institutions will freeze the account or the suspicious property as it will reinforces the financial institution’s view on its knowledge or suspicion.
Also, for any financial institution to continue to honour the customer’s instructions would constitute a criminal offence of money laundering under s.25 of the Organised and Serious Crimes Ordinance, Cap 455 (“OSCO”).
In this connection, it is pivoted here that the first thing that any victim should do is to contact the police. The reason being is that only the police will be in a position for rapid response to put a freeze in place and also provide the victim with a police reference which can in turn be forwarded to the recipient bank in order to trigger an administrative freeze as illustrated above. Lawyers will have to know how to use such information of course to be effective.
Civil Injunctions and Their Role in Hong Kong Cybercrime Money Recovery
Whilst victims should consider civil injunction, it is pivoted here that such injunction should take place after the police freeze is effective (which the investigation unit should be able to confirm within days). The reason being:
Firstly, your legal costs are justified as your civil injunction will be targeting an actual amount of money within a targeted account (instead of an empty account).
Second, you can decide on proper cause of action (e.g. where the account is emptied, you can contemplate whether you want to jump to disclosure order application so as to commence tracing – spending money where it is effective).
This will take care of the time requirements for lawyers to prepare the necessary paperwork (which takes time in order to avoid proceeding with an application that is otherwise too ‘raw’ – which can be subject to challenge and discharge).
How to File a Police Complaint for Hong Kong Cybercrime Money Recovery
One of the common features found in a large number of cyber-crime cases that has been handled in the past is that a lot of clients/victims are overseas nationals/entities. A common concern is whether the report will require victims to travel to Hong Kong. The answer to this question is ‘no’.
Where a crime had involved an account located in Hong Kong, the cybercrime can be reported to the Cybercrime Unit of the Hong Kong Police Force via their online report room with the following URL:
Victim should note that owing to the fact that this portal is used for urgent cases, the number of information that can be provided then and there is limited. It is therefore essential for victims to remember putting forth the following information:
First, at the very start, state your purpose, which should be a “request for urgent police freeze of fraudster’s account”.
The next major piece of information to provide is the fraudster’s banking particulars which should include (i) the account number, (ii) the Bank’s name and branch, (iii) SWIFT code, (iv) branch address, and (v) the account holder’s name.
With what limited character limit is left, you should provide an overview of how the offence came about and how you discovered the crime. For email fraud, it will also be advisable to have the fraudulent emails organised in a chronological fashion for easy handling.
Victims should note that fraudsters operate very fast and the window of opportunity to make the report and effect a police freeze is usually quite small. Victims who are uncertain can of course also ask for legal assistance for this step (which will be faster than preparation of a full-blown injunction application).
Once a police complaint is filed, other action (e.g. informing the banks that they are holding onto proceeds of a crime and applying for civil injunction) can follow.
Conclusion
In short, in any Hong Kong cybercrime money recovery situation, judgments and interlocutory decisions (whilst very important by their own right) will be meaningless if there is nothing to enforce against.
It is therefore of the utmost importance for victims (and/or their legal representatives) go to the police at the earliest opportunity. The quick steps to this guide that victims should consider is therefore:
Report to the police.
Inform the banks; and finally.
Obtain civil injunction (where advised).
Quick action significantly increases the chance of successful recovery.
FAQ: Hong Kong Cybercrime Money Recovery
What should I do first if I become a victim of cybercrime?
Immediately file a police report and request an urgent freeze of the fraudster’s account.
Do I need a court order to stop the fraudster from moving money?
A court injunction is helpful, but an administrative freeze can often be triggered first through a police report.
Can overseas victims report Hong Kong cybercrime without travelling?
Yes. Victims can file the complaint through the Hong Kong Police’s online reporting portal.
How fast must I act to recover funds?
Very quickly. Cybercriminals often transfer money within hours, so reporting immediately is crucial.
Are banks required to freeze suspicious funds?
Banks may freeze the account if they suspect money laundering risk, especially after receiving a police reference number.
When should I apply for a civil injunction?
After confirming that an administrative freeze is in place, ensuring the funds are still in the account.
Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
For specific advice about your situation, please contact:
Anna Lau
Litigation Partner
+852 2388 3899