Securities and Exchange Commission sounds alarm on fraud
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Securities and Exchange Commission sounds alarm on fraud

Unlicensed operators set up event booths

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The Securities and Exchange Commission (SEC) has warned investors to exercise caution when using the services of unlicensed operators selling securities, derivatives and digital assets, including foreign operators, as they could be pitching scams or fraudulent offers.

Unlicensed companies promoting their services via various channels, including exhibition booths, are beyond the scope of SEC supervision and carry risk for fraud or scams, said the regulator.

The SEC is monitoring events and exhibitions involving booths offering investment advice and service solicitation, said Anek Yooyuen, deputy secretary-general and spokesman of the SEC.

If these activities are conducted by unlicensed business operators or involve investment products not approved for sale, which are deemed illegal under SEC laws, the regulator will request the event organisers close these booths and pursue legal action, which may result in both imprisonment and fines.

If such activities breach other laws, the SEC will collaborate with relevant authorities to take further action, said Mr Anek.

The SEC urges event organisers to exercise caution when allowing unlicensed business operators to set up exhibition booths, as this may facilitate illegal activities.

The regulator has shut down more than 1,800 fraudulent online accounts.

Online fraud occurs all the time on social media channels, he said.

As of August this year, 497 people had complained to the SEC's hotline in 2024, with 350 accounts deemed investment fraud, said Mr Anek.

The SEC notified platform providers, which blocked 91.4% of all reported fraudulent channels, warning the public to be careful of fraudsters using tricks to lure people into transferring money to individual accounts.

The Investment Fraud Hotline project was launched in November 2023 and ran until Aug 31 this year.

The SEC blocked 1,863 fraudulent investment channels on various platforms, such as Facebook, Instagram, Line and TikTok. Roughly 98% of the accounts that were requested to be blocked were taken down by platform operators, according to the regulator.

"People should be careful about investment solicitations via social media. They should thoroughly check the information before deciding to invest, directly asking the company or personnel in charge in the capital market," said Mr Anek. "They should not provide personal information or transfer money to individual accounts."

People who have been deceived can report information to the SEC website at www.sec.or.th/scamalert, email scamalert@sec.or.th, or call 1207, then press 22.

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