Hong Kong takes anti-scam lessons into a cha chaan teng as phishing cases rise

On September 25, Michael Wong (Deputy Financial Secretary) visited a cha chaan teng in Central to attend the launch ceremony of an SFC investor anti-scam education campaign. He said that about 20,600 fraud cases occurred in Hong Kong in the first half of this year, of which 57%, or about 11,000 cases, were online scams, down 18% year on year; however, "phishing" scams are increasing and are a major challenge to be faced in the future.

Why choose a cha chaan teng? This time, the SFC wants to bring practical anti-scam information into everyday life settings, helping the public more effectively identify common investment scams and fraud risks, and develop a habit: before investing, first go to the SFC's Public Register of Licensed Persons and Registered Institutions and Alert List to check the other party's background and licensing status. The campaign will last 1 month, and anti-scam display areas, information lookup zones and photo spots have been set up in the cha chaan teng.

Kelvin Wong (SFC Chairman) said the SFC will continue to combat financial scams through a multi-pronged approach including investor education, public outreach, cross-sector collaboration and effective enforcement. He hopes this campaign will remind the public that before making any investment decision, they may as well first ask themselves 3 simple questions: Who is the other party? What is the product? Why would this opportunity come my way?

Julia Leung (SFC CEO) said that spending just a few minutes checking the SFC's public register and alert list before investing could make it possible to avoid losses of hundreds of thousands or even millions of dollars. She reminded the public not to easily believe online investment invitations touting high returns or guaranteed returns. Most importantly, stay calm, verify carefully, and keep away from suspicious investment traps.

In the time it takes to have a cup of milk tea and a pineapple bun, it is enough to check one name. For people striving in Hong Kong, money is saved cent by cent; for Chinese making a living across Southeast Asia, their phones also receive all kinds of "investment opportunities" every day. After asking these 3 questions, many so-called "good opportunities" reveal themselves.

Scam-proof guide: how to guard against investment scams and "phishing" scams

1. What scams commonly look like

● Investment invitations come from online, and right from the start they promise high returns, even "guaranteed returns": Julia Leung (SFC CEO) specifically reminded the public not to easily believe such online investment invitations.

● "Phishing" scams: this is the new challenge specifically pointed out by Michael Wong (Deputy Financial Secretary). Comparing this with the reminder from the Hong Kong Monetary Authority (HKMA), it is clear what to guard against: banks will not direct customers via hyperlinks in SMS messages or emails to their websites to conduct transactions, nor will they request customers by phone, email or SMS messages, including through hyperlinks, to provide sensitive information such as login passwords and one-time passwords. Anything that approaches you in this way should be treated as a scam.

2. Before making a decision, first ask yourself 3 questions

● Who is the other party? Are they a licensed person or registered institution of the Securities and Futures Commission (SFC)?

● What is the product? If it cannot be explained clearly or cannot be found, do not touch it.

● Why would this opportunity fall to you? For "high returns" that fall from the sky, first think about what the other party is after.

3. Proper verification channels

● The Public Register of Licensed Persons and Registered Institutions on the SFC website (www.sfc.hk): check whether the other party has a licence.

● The SFC's Alert List: lists unlicensed companies and suspicious websites.

● The Anti-Deception Coordination Centre (ADCC) website of the Hong Kong Police Force (www.adcc.gov.hk) has a "List of Fraudulent Investment Platforms".

● The police's "Scameter" on the "CyberDefender" website (cyberdefender.hk): a one-stop scam trap search tool to help the public identify scams and online traps.

4. What to do if you have already transferred money

● Contact your bank immediately and explain the situation.

● Call the Hong Kong Police Force Anti-Deception Coordination Centre (ADCC) 24-hour Anti-Scam Helpline 18222 for assistance, or report the case to the nearest police station.

● If you provided personal information or carried out transactions in a scam case involving a bank, the Hong Kong Monetary Authority (HKMA) advises contacting the relevant bank and calling 2860 5012 to report the case to the Information Centre of the Criminal Headquarters of the Hong Kong Police Force.

● Keep the chat records, transfer receipts, the other party's account details, and website addresses.

Investing is not something to rush. Check first, then invest; if you cannot verify it, do not invest. Earning a little less does not matter; only by safeguarding your principal can you live with peace of mind.