【Fraud Prevention】SFC's Leung Fung-yee: Last year, received investment scam complaints increased by 40% year-on-year; 1 in 4 involved virtual currencies; individual losses exceeded HKD 10 million; currently studying further sharing of warning information

Investment scams are constantly emerging. Hong Kong Securities and Futures Commission (SFC) CEO Julia Leung said that last year, the SFC received nearly 900 investment scam complaints, a nearly 40% increase year-on-year, with one-quarter related to virtual currencies. There was a case with a single loss of over HKD 10 million. She lamented that many elderly people in their seventies and eighties are being deceived, often losing their lifelong savings, which is the most heartbreaking situation.

She admitted that the development of digital assets brings new challenges. Due to the rapid growth of investment scams, the SFC has recently strengthened cooperation with the police, Customs, the Hong Kong Monetary Authority, licensed brokers, and virtual asset service providers. First, enhance cross-sector intelligence sharing and resource integration to improve detection, prevention, and response capabilities for financial crimes. They are also studying further sharing of warning information to help the public fully understand scam prevention messages, along with expanding outreach and anti-scam publicity to build a broad social defense.

“24/7 Payment Halt Mechanism” Intercepts Over 50% of Related Crime Profits

She pointed out that the SFC has established communication channels with licensed institutions and actively cooperates with the police Anti-Scam Coordination Centre’s “24/7 Payment Halt Mechanism” to freeze suspicious or high-risk transfers in real-time. As of the end of January this year, more than 50% of the total requested halts have successfully intercepted related criminal gains.

She explained that when citizens report to the police, the police will quickly notify licensed institutions through round-the-clock contact channels to immediately stop and freeze suspicious funds, creating a safe market environment.

Urges Industry to Proactively Contact Police When Suspicious Situations Occur

She also called on the industry to enhance detection, prevention, and response capabilities for financial scams. When suspicious situations arise, they should proactively verify and contact the police to help intercept suspicious funds and prevent scams from happening on all fronts.