The Securities and Exchange Commission (SEC) has issued a warning to investors regarding the increasing risks of fraud associated with unlicensed operators selling securities, derivatives, and digital assets. These unlicensed operators, including foreign entities, may be engaging in scams or fraudulent activities, putting investors at risk of financial loss.
According to Anek Yooyuen, the deputy secretary-general and spokesman of the SEC, unlicensed companies promoting their services through various channels, such as exhibition booths, are operating outside the jurisdiction of SEC supervision. This lack of oversight exposes investors to potential fraud or scams, as these operators may be offering investment products that are not approved for sale under SEC laws.
The SEC is closely monitoring events and exhibitions where booths are offering investment advice and soliciting services. If these activities involve unlicensed business operators or unauthorized investment products, the regulator will take swift action to shut down the booths and pursue legal measures, which could include imprisonment and fines for those involved.
In cases where fraudulent activities breach other laws, the SEC will collaborate with relevant authorities to take further action to protect investors. Anek emphasized the importance of event organizers exercising caution when allowing unlicensed operators to set up exhibition booths, as this can inadvertently facilitate illegal activities that harm investors.
One of the key challenges the SEC faces in combating fraud is the proliferation of online scams, particularly on social media platforms. Anek highlighted that the regulator has shut down over 1,800 fraudulent online accounts and received numerous complaints from the public regarding investment fraud. The SEC has been proactive in working with platform providers to block fraudulent channels, with a success rate of 91.4% in removing reported fraudulent accounts.
The Investment Fraud Hotline project, launched in November 2023, has been instrumental in identifying and shutting down fraudulent investment channels on platforms like Facebook, Instagram, Line, and TikTok. Anek urged the public to exercise caution when approached with investment solicitations on social media, advising individuals to verify information directly with the company or personnel responsible for the investment opportunity.
Individuals who have fallen victim to investment scams are encouraged to report their experiences to the SEC through the official website, email, or hotline. By reporting fraudulent activities, investors can help the SEC in its efforts to combat fraud and protect the integrity of the capital market.
In conclusion, the SEC’s warning to investors about the increasing risks of fraud associated with unlicensed operators underscores the importance of due diligence and caution when considering investment opportunities. By staying informed and vigilant, investors can protect themselves from falling prey to fraudulent schemes and scams that could result in financial loss. The SEC’s commitment to monitoring and addressing fraudulent activities demonstrates its dedication to safeguarding investors and maintaining the integrity of the financial market.