TechFlow News: On May 19, the Securities and Futures Commission (SFC) of Hong Kong issued a public announcement urging members of the public to remain highly vigilant against scams impersonating the Investor Compensation Fund. Such frauds often cause victims to suffer secondary losses. Fraudsters frequently target individuals who have previously incurred investment losses, falsely claiming that the victims are eligible for compensation from the Investor Compensation Fund to recover their losses. They then demand an additional “deposit” or “handling fee” to arrange for the “compensation” payout from the fund—leading many victims to fall prey to secondary fraud.
The SFC reminds the public that it will never contact investors via social media or instant messaging platforms to request payments related to compensation claims.
