They even rented an office to make victims believe in them.

The three men, aged from 19 to 28, were arrested on Thursday for conspiracy to defraud.

The police said they received reports between July and August on telephone scams. The fraudsters told citizens they were staff of a reputed bank in the city and can offer citizens loans with low interest rate.

As citizens became interested in soliciting the loans, the fraudsters then handed the contact information of the citizens over to his partners, who asked citizens for their salary statements and address proof.

After citizens submitted relevant documents, the fraudsters would then tell citizens that their applications for the loans had been granted, and ask them to visit a “law firm” in Kowloon City to conduct financial assessment.

However, that “law firm” was only an office decorated by the fraudsters in order to gain the trust of the victims.

As the victims signed fake documents in the office, the fraudsters then requested them to pay cash guarantee ranging from HK$40,000 to HK$270,000. The fraudsters then told the victims to head to certain bank branches to complete the application procedures for the loans after receiving the money.

The victims only knew that the fraudsters were not staff members of the bank and there was no loan record in the bank's system at all by the time they arrived at the bank.

After an in-depth investigation, officers searched the fake office in Kowloon City on Monday with a warrant and confiscated suspected falsified documents.

Today they arrested the three men in a guesthouse in Mong Kok, and found the tenancy agreement of the office, name cards of the fake law firm and transactions statements in their possession.

The three men were remanded for questioning and officers didn't rule more arrests to be made.