Hong Kong Securities and Futures Commission: Beware of Scams Claiming to Help Investors File Claims with the Investor Compensation Fund

The Securities and Futures Commission (SFC) of Hong Kong has issued a public announcement urging members of the public to remain highly vigilant against scams that fraudulently impersonate the Investor Compensation Fund. Such scams often cause victims to suffer secondary losses: fraudsters contact individuals who have previously incurred investment losses and falsely claim that the victims are eligible for compensation from the Investor Compensation Fund to recover their losses—demanding only an additional “deposit” or “handling fee” to arrange for the “compensation” payout from the fund. As a result, numerous victims have fallen 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.