Security

Research Office Legislative Council Secretariat

ISSH29/20-21

Online shopping crime in Kong Figure 1 – Reported crime in Highlights

No. of cases 80 000 75 965 • During 2010-2020, deception crime reported to the Hong Kong Police has exhibited a 60 646 63 232 60 000 significant growth by 175% to 15 553 cases, contrasted against a 17% drop in overall

40 000 crime. As such, the proportion of deception to overall crimes has tripled from 7% to 25% within a decade, largely attributable to rapid 20 000 development of information and 15 553 5 652 7 260 communication technology and social 2010 2012 2014 2016 2018 2020 media. More recently, increasing usage of Deception online platforms for purchase of necessities

and social interactions upon the outbreak of Figure 2 – Deception caseload by type in 2020 COVID-19 also poses additional deception risks (Figure 1).

• Analyzed by type, online shopping scam exhibits 413% upsurge during 2016-2020, 5 500 next only to a 694% growth in online 6 678 romance scam (Figure 2). There were (43%) 6 678 cases of such online shopping crime (with some two-fifths related to face masks) in 2020, taking up the largest share of 43%

510 767 in total deception crime. This was followed 905 1 193 by telephone deception (8%), online romance scam (6%), email scam (5%) and Online shopping scam Telephone deception Online romance scam Email fraud Investment fraud Others investment fraud (3%). The combined share of these five types of frauds went up

markedly from 49% to 65% over the past Figure 3 – Trend of online shopping in Hong Kong five years. Proportion Amount (HK$) 50% 5,000 • The upsurge in online shopping scams is 4,000 43% 40% 4,000 closely related to wider acceptance of e-commerce nowadays. According to the 30% 36% 3,000 Census and Statistics Department, the 2,000 proportion of respondents having attempted 20% 16% 2,000 online shopping has almost tripled to 43% 10% 300 1,000 during 2009-2020 (Figure 3). The median sum spent on online purchase even leaped

2009 2012 2014 2016 2018 2020 by 13-fold to HK$4,000 per annum in 2018, before halving to HK$2,000 amidst a more Share of persons attempted online shopping difficult economic environment in 2020. Annual median amount spent on online shopping (HK$)

Online shopping crime in Hong Kong (cont'd) Figure 4 – Average monetary loss in selected Highlights deceptions, 2016-2020 • As online shopping scam usually involves Online shopping scam 19 purchase of products (e.g. clothes, concert tickets and food) with lower value, its Telephone deception 248 monetary loss per case is lower than other Online romance scam 532 frauds. During 2016-2020, the average monetary loss per online shopping scam was Email fraud 2,282 HK$19,000 (Figure 4). This was far lower than those of investment fraud (HK$3.97 million) Investment fraud 3,967 and email scam (HK$2.28 million), given that 1,000 2,000 3,000 4,000 most of the victims in the latter frauds are

HK$ '000 per case investors and business firms. Figure 5 – Complaints lodged to the Consumer Council on online shopping • Certain online shopping crimes (e.g. non- delivery of goods) also lead to complaints No. of complaints Resolution rate lodged to the Consumer Council ("CC"). During 15 000 100% 2016-2020, these complaints had registered a 77% cumulative increase of 325% to 13 642, 80% 69% representing 44% of total complaints received 10 000 60% by CC in 2020. However, as fraudsters usually create numerous fake social media accounts 13 642 40% without contacts, it is very difficult for CC to 5 000 proceed investigation. As such, the resolution 20% rate on e-shopping disputes fell from 77% to 3 208 69% during 2016-2020 (Figure 5). More 2016 2017 2018 2019 2020 recently, deceptions emerge on the part of shoppers who offer bogus cheques to buy Complaints received Resolution rate at e-shops, prompting calls for

Figure 6 – Enforcement against deception by the Police enhanced regulation of e-commerce activities.

No. of persons Detection rate • Due to the rapid uptrend in online scams, the 2 500 60% Police set up the Anti-Deception Coordination 48% Centre in July 2017 to step up public education 50% 2 000 43% 38% and online patrol. This helped arresting more 40% deception suspects, up by 25% during 1 500 2017-2020. However, the detection rate of 1 641 30% 1 000 1 567 2 058 deception fell further to just 11% in 2020, way 20% 11% below that of 38% in overall crimes (Figure 6). 19% 21% 500 10% According to the Police, many fraudsters are based in other places, requiring joint enforcement actions across boundary. 2010 2012 2014 2016 2018 2020

Persons arrested Overall crime detection rate Data sources: Latest figures from , Detection rate of deception Security Bureau, Census and Statistics Department and Consumer Council.

Research Office Information Services Division Legislative Council Secretariat 25 June 2021 Tel: 2871 2129

Statistical Highlights are compiled for Members and Committees of the Legislative Council. They are not legal or other professional advice and shall not be relied on as such. Statistical Highlights are subject to copyright owned by The Legislative Council Commission (The Commission). The Commission permits accurate reproduction of Statistical Highlights for non-commercial use in a manner not adversely affecting the Legislative Council. Please refer to the Disclaimer and Copyright Notice on the Legislative Council website at www.legco.gov.hk for details. The paper number of this issue of Statistical Highlights is ISSH29/20-21.

2