Police on Monday said they smashed a fraud syndicate which allegedly made use of deepfake technology to persuade people to invest in cryptocurrency.

Officers said they raided a premises in a Hung Hom industrial building and arrested 27 people, including core syndicate members.

Police said the total amount of losses exceeded HK$360 million.

They said the victims were not only from Hong Kong but also the mainland, Taiwan and Singapore, among other places.

The suspects, aged between 21 and 34, were arrested on suspicion of conspiracy to defraud and possessing offensive weapon.

Senior superintendent Fang Chi-kin said the syndicate made use of deepfake technology to build relationships online.

"They got in touch with the victims on social media, and sent them photos generated by AI, shaping a character who had a very appealing appearance, personality, career and academic qualifications," he said.

"Men from different regions were among the victims... Although the victims had video calls [with the character], they falsely believed that they were dating a high-quality person."

Fang added that the syndicate hired people with high academic qualifications.

"The syndicate hired graduates from local universities who majored in digital media, and used them as technology specialists. From our investigation, they also collaborated with overseas fraudsters and IT experts to build a fake cryptocurrency investment platform."

Superintendent Iu Wing-kan said the syndicate had been operating for more than a year.

"They set up a performance board. The teams and members who successfully fooled the most victims were listed on the board. The one who topped the chart last month gained US$266,000," he said.