Hong Kong Police Force Commercial Crime Bureau Advisory: Precautions Against Fraudulent Investment Platforms - "A-Shares"
Release Date: 2023-05-24
The Hong Kong Police Force Commercial Crime Bureau has issued a warning to all businesses, urging them to advise investors to exercise caution and remain vigilant against impersonators of licensed financial trading platforms, which are enticing victims into fraudulent stock investment schemes.
Background:
Recent reports to the police indicate a rise in scams where perpetrators pose as investment professionals or stock brokers affiliated with legitimate local financial trading platforms. These fraudsters invite victims to participate in instant messaging group chats, claiming to possess insider knowledge about mainland stocks and urging them to invest. Upon agreeing to this investment proposition, victims receive hyperlinks directing them to download deceptive mobile applications related to investment (A-Shares, including A股通, 陆股通).
Once victims open accounts on these fraudulent platforms, they are instructed to transfer funds to local personal bank accounts specified by the scammers, under the pretense of depositing into their investment accounts. During the initial phase, to build trust, the fraudsters fabricate transaction records, showing fictitious returns in the victims' online accounts, creating an illusion of asset growth. However, these displayed asset values are mere numerical fabrications. When victims find themselves unable to withdraw their funds, the realization dawns that they have been scammed, prompting them to report the incident to the authorities. The legitimate financial trading platforms have categorically stated that they are being impersonated in these fraudulent schemes, and the police are actively investigating the situation.
Police reports reveal that from January to February 2023, there were 499 cases of investment-related fraud, totaling approximately HKD 30.68 million. Furthermore, from the beginning of 2023 to April 20, there were 65 cases linked to mainland stock trading platforms (A-Shares, including "A股通" and "陆股通"), amounting to around HKD 59.46 million.
Key Points to Consider:
- Should you receive inquiries from investors regarding advertisements or communications purportedly from your company (including download links), advise them to return the advertisement or message to your company for authenticity verification.
- If an investor expresses a sudden desire to cancel their account after a period of inactivity or transfers a significant amount to an unfamiliar bank account, it is advisable to investigate the underlying reasons.
- If an investor mentions other platforms offering superior services and higher returns, request additional details and confirm whether the platform is "A-Shares, A股通" or "陆股通," while also sharing the police's advisory.
- Encourage clients to reach out for any inquiries to the Hong Kong Police Force Anti-Fraud Coordination Centre’s "Fraud Prevention Hotline 18222." This hotline operates 24/7, providing anti-fraud consultation services and the latest updates on fraud tactics to help citizens effectively combat prevalent scams.
- In case of an emergency, please contact the police immediately at (999).
Sincerely,
Hong Kong Securities and Futures Professionals Association
Case Summary: The police urge citizens to remain cautious regarding online investment scams.
https://www.hksfpa.org/tc/detail-page/id/34
Anti-Deception Coordination Centre:
https://www.adcc.gov.hk/zh-hk/alerts-detail/alerts-1651873324798922753.html
2023-05-24 SCMP Hong Kong police warn of surge in investment scams offering mainland Chinese stocks, with largest case this year involving HK$4.5 million （相片）
2023-05-24 Standard Warning on mainland stock scams as cases rise （相片）
Background:
Recent reports to the police indicate a rise in scams where perpetrators pose as investment professionals or stock brokers affiliated with legitimate local financial trading platforms. These fraudsters invite victims to participate in instant messaging group chats, claiming to possess insider knowledge about mainland stocks and urging them to invest. Upon agreeing to this investment proposition, victims receive hyperlinks directing them to download deceptive mobile applications related to investment (A-Shares, including A股通, 陆股通).
Once victims open accounts on these fraudulent platforms, they are instructed to transfer funds to local personal bank accounts specified by the scammers, under the pretense of depositing into their investment accounts. During the initial phase, to build trust, the fraudsters fabricate transaction records, showing fictitious returns in the victims' online accounts, creating an illusion of asset growth. However, these displayed asset values are mere numerical fabrications. When victims find themselves unable to withdraw their funds, the realization dawns that they have been scammed, prompting them to report the incident to the authorities. The legitimate financial trading platforms have categorically stated that they are being impersonated in these fraudulent schemes, and the police are actively investigating the situation.
Police reports reveal that from January to February 2023, there were 499 cases of investment-related fraud, totaling approximately HKD 30.68 million. Furthermore, from the beginning of 2023 to April 20, there were 65 cases linked to mainland stock trading platforms (A-Shares, including "A股通" and "陆股通"), amounting to around HKD 59.46 million.
Key Points to Consider:
- Should you receive inquiries from investors regarding advertisements or communications purportedly from your company (including download links), advise them to return the advertisement or message to your company for authenticity verification.
- If an investor expresses a sudden desire to cancel their account after a period of inactivity or transfers a significant amount to an unfamiliar bank account, it is advisable to investigate the underlying reasons.
- If an investor mentions other platforms offering superior services and higher returns, request additional details and confirm whether the platform is "A-Shares, A股通" or "陆股通," while also sharing the police's advisory.
- Encourage clients to reach out for any inquiries to the Hong Kong Police Force Anti-Fraud Coordination Centre’s "Fraud Prevention Hotline 18222." This hotline operates 24/7, providing anti-fraud consultation services and the latest updates on fraud tactics to help citizens effectively combat prevalent scams.
- In case of an emergency, please contact the police immediately at (999).
Sincerely,
Hong Kong Securities and Futures Professionals Association
Case Summary: The police urge citizens to remain cautious regarding online investment scams.
https://www.hksfpa.org/tc/detail-page/id/34
Anti-Deception Coordination Centre:
https://www.adcc.gov.hk/zh-hk/alerts-detail/alerts-1651873324798922753.html
2023-05-24 SCMP Hong Kong police warn of surge in investment scams offering mainland Chinese stocks, with largest case this year involving HK$4.5 million （相片）
2023-05-24 Standard Warning on mainland stock scams as cases rise （相片）
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