Hong Kong’s Market Watchdog Pushes SMS Verification for Brokers
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Hong Kong’s market regulator is asking brokers to join a free SMS system to stop scam text messages. Investors have been tricked by messages that look like they came from real brokers. These messages lead to fake websites where login details are stolen. Scammers then get into accounts and trade without permission.
The Securities and Futures Commission (SFC) said more investors are being hurt by these scams. Some fake websites look almost the same as real ones. Clients don’t always know something is wrong until money is gone or trades appear that they didn’t do. By that time, it’s often too late.
The SFC Encourages Brokers To Join The SMS Sender Registration Scheme
According to the update, the best way to prevent these SMS scams is to check if messages are real. To do this, the SFC wants brokers to sign up for the SMS Sender Registration Scheme. This tool shows which messages are real. When a message is verified, it’s clear to clients and they can avoid scams. The SFC said this step is free and helps prevent scammers from copying broker names.
The SFC said brokers also need to check for strange account activity. If they see something that looks wrong, they should report it to the Joint Financial Intelligence Unit. Quick reporting helps find the problem early and gives police more time to investigate.
The regulator said brokers should talk more with clients about scams. If a broker has seen scams happen, they should tell their clients. The SFC also suggested using Scameter and its app Scameter+ to check if messages or websites are real or fake.
Julia Leung, the leader of the SFC, said scam methods are changing and catching more investors. She noted that the SFC is working with regulators in other places to stop these scams. According to reports, social media has helped scams spread faster.
Leung said investors need clear information. If clients understand how scams work, they can avoid them more easily. She added that brokers should not wait until something goes wrong—they should guide clients ahead of time.
The SFC Warns Investors Against Clicking Unknown Links In Text Messages
The SFC said investors should not click on links in text messages unless they know who sent them. Even if the message looks normal, it’s safer to go to the broker’s website or call the company. Using fake websites can lead to account theft.
The SFC brokers who give personal details to a scam site should contact their broker right away. The regulator urges them to report the issue to the police. Fast action can help prevent more problems and may help catch the criminals behind it.
According to the SFC, it’s not only brokers who must act—clients also have to stay alert. Trust in the system depends on both sides working together. The more careful everyone is, the safer accounts will be.
These scams are not new, but they’ve been happening more often. The SFC said this is the time to act. By taking the right steps now, brokers and investors can protect accounts before any damage is done.
