SEC, Fetco sound alarm on investment scams

The Securities and Exchange Commission (SEC) and the Federation of Thai Capital Market Organizations (Fetco) warn the public to be wary of investment scams and suggest checking the list of authorised persons on the SEC Check First application.

The agencies said many fraudulent impersonators are claiming to be securities companies, asset management companies or financial institutions, insisting they have licences in order to deceive people into investing.

Deceitful tactics include impersonating names, images or logos of the SEC and relevant agencies in the capital market, or claiming to be an employee of a licensed asset management company or financial institution.

For safety, both the SEC and Fetco advise checking the list of people with licensed businesses and securities on the SEC Check First application.

They recommend carefully examining information before making an investment decision and to be wary of certain telltale signs, such as an improbable rate of returns, unclear source of returns, returns from persuading others to invest, and claims of being completely risk-free or providing guarantee returns.

Other signs to be cautious of are impersonation of famous and credible individuals or companies, lack of verifiable reference sources in securities and financial assets, and requests to deposit investments into a personal account that does not report or notify the investors during transfer.

Ruenvadee Suwanmongkol, secretary-general of the SEC, said the regulator has been reporting fraudulent investment schemes over the past year, warning people not to associate with non-authorised groups because investors will not receive protection from the law in such cases.

She stressed that investment advisers of securities firms and business operators must have a registration number approved by the SEC.

They must also clearly explain information about investment products, the product’s characteristics and the risks involved from reliable sources of information.

Paiboon Nalinthrangkun, board chairman of Fetco, said all investment decisions must be supported by trustworthy information and operators checked for verification.

The SEC and Fetco plan to discuss additional guidelines to protect investors in online transactions.

The list of authorised people, business operators and securities can be found on the SEC Check First application and the SEC website (www.sec. or.th) on the SEC Check First page.