Hong Kong police have broken up a local syndicate that allegedly used AI to alter identity card photos to open bank accounts and take out loans, arresting 22 people on suspicion of conspiracy to defraud and laundering more than HK$190 million (US$24.4 million).

Police said on Friday that between September 2024 and April this year, the syndicate used artificial intelligence (AI) technology to combine the facial features of its members with those of people in photos in identity cards that had been reported lost.

The group then uploaded the altered identity cards and selfies, attempting to impersonate the cardholders.

After passing identity verification procedures, the suspects illegally opened bank accounts, applied for loans and credit cards and transferred the proceeds to 18 stooge accounts, with the amount involving more than HK$190 million, police said.

Senior Inspector Kam Tsz-ho said officers arrested 16 men and six women, aged 19 to 76, comprising two masterminds, five core members and 15 stooge account holders during an operation on Thursday and Friday.

Some of those arrested had triad backgrounds, he added.