Police are warning the public to be wary of turning to social media or online forums for financial advice, as a staggering rise in investment fraud cases has cost victims over $2.2 billion so far this year.
In the first nine months of 2024, authorities recorded around 3,500 cases of online investment scams – a troubling trend that has seen both the number of incidents and total amount stolen drop by about 20% compared to the same period in 2023.
“They opened some WhatsApp groups using our logo as their profile picture to persuade the victims to believe that they are really police officers and ask them to provide some bank account details to scam their money,” said Senior Inspector Wan Pik-yee.
The brazen tactics employed by these fraudsters have evolved, according to Michelle Yeung, head of investor education at the Investor and Financial Education Council. She said more people have fallen victim to fake online ads promising lucrative investment opportunities.
“Listening or looking into the advice that is given on social media, I don’t think there’s anything wrong,” Yeung explained. “But when it comes to asking you to join a group or click on any links, that’s when it’s really a problem.”
Authorities are urging the public to approach any unsolicited financial advice found on social media or online forums with extreme caution. “It’s always worth to look into alternative sources just to verify whether that information is for real,” Yeung warned.
With billions lost to these scams already this year, police are doubling down on efforts to educate the public and crack down on the criminal networks behind these increasingly sophisticated investment frauds.
