The Securities and Futures Commission (SFC) has unveiled an official Facebook page with a campaign to warn the public about the increasing use of social media platforms to defraud investors.
The Hong Kong regulator explains how online investment scams operate and provides tips for avoiding them.
Investors are urged to be wary when offered “inside information” or investment tips online, particularly when strangers on social media promote small-cap or less liquid stocks.
These scams are often part of “ramp and dump schemes” which can result in the collapse of a listed company’s share price.
In some cases, scammers have impersonated well-known investment advisers and to draw victims into the scheme.
Crackdown
Ashley Alder, SFC chief executive, said: “Cracking down on organised investment fraud on online platforms is a high priority.
“To avoid falling victim to these scams, the public must be vigilant when offered unsolicited investment advice or tips on social media.”
The official SFC Facebook page will feature the latest news and regulatory updates from the SFC, including investor warnings about market risks, unlicensed activity and other illegal conduct.
