The Stock Exchange of Thailand (SET) in collaboration with alliances in the capital market sector, business organizations, and government agencies declared the intention of “collaboration in the fight against investment fraud" on July 24, 2023. The alliances consist of the Securities and Exchange Commission (SEC), the Federation of Thai Capital Market Organizations (FETCO), Thai Bankers’ Association (TBA), Thai Listed Companies Association (TLCA), mai-listed Company Association (maiA), Association of Thai Securities Companies (ASCO), Association of Investment Management Companies (AIMC), Capital Market Development Fund (CMDF), Anti-Fake News Center Thailand (AFNC), and Cyber Crime Investigation Bureau (CCIB).
The collaborative initiative is aimed to exchange information, to examine and detect fake news, and to campaign to alert the public to be equipped with immunity and realization not to fall victims to scammers. In addition, experts are invited to participate in a seminar to share their opinions and experiences with highlights of solutions to clamp down on investment frauds under the topic "Getting smart to avoid investment scams with immunity to fraud". The guest speakers comprise Wetang Phuangsup, Deputy Permanent Secretary of the Ministry of Digital Economy and Society (DES), Vikrom Kromadit, Chairman of Amata Corporation pcl, Pichet Sithi-Amnuai, Chairman of ASCO, Chavinda Hanratanakool, Chairman of AIMC, and Rongrak Phanapavudhikul, SET Senior Executive Vice President.
SET President Pakorn Peetathawatchai said that these days, investment scams are rampant on social media. Fraudsters typically impersonate well-known organizations, executives and celebrities to gain credibility, then lure the victims to invest, as a result causing damages not only to those victims but also the economy and society on a large scale. Therefore, SET, as the country's investment platform, in collaboration with the entities in the capital market sector, has initiated a project so-called “Collaboration in the fight against investment fraud.”. In the first phase, all partners will collectively communicate by revealing the related facts, pointing out fake news, while providing knowledge to build immunity for investors and the public to shield them from being victims of scammers, via partners’ channels and media in a variety of formats that can reach the wider public. In the next phase, there will be an integration of operating system among the capital market sector and government agencies, to develop a process to stop fraudulent investment cases faster with more efficiency.
Acting SEC Secretary-General Thawatchai Pittayasophon said that online investment scam is one of threats which damage many people by falsely using name or logo of SEC, organizations, companies, and individuals related to the capital market on social media. SEC realizes the larger-scale scams at present and has taken actions in many aspects to continuously safeguard investors and people to provide them with sufficient information to keep themselves safe. SEC is very delighted to see the launch of the project “Collaboration in the fight against investment fraud”, indicating the earnestness of all sectors to collectively prevent investment scams.
FETCO Chairman Kobsak Pootrakool said that investment scams have started to increase more and more. Problem-solving and prevention cannot be managed by such victimized persons or organizations alone. It should not be considered a problem of a particular organization but it must be carried out throughout process starting from deterrence to suppression simultaneously. Notably, it’s a good starting point that various organizations in the capital market and the government sectors concertedly drive the project “Collaboration in the fight against investment fraud”, so as tovhelp solve the problems, reduce economic losses and prevent people from becoming victims of scammers.
TBA Chairman Payong Srivanich said that TBA and member banks are aware of impacts from threat of financial and investment fraud, especially “ponzi scheme” hidden in the name of “savings” or “investment” which deals a severe blow to economic system. TBA in coordination with related agencies to continuously introduce measures to combat against fraudulent financial activities. As per the preventive measures, banks, for example, cancelled sending SMS and email with links; mobile banking alerts are sent to account owners; and facial scan is required for mobile-banking money transfer worth more than THB 50,000 (approx. USD 1,459) per transaction or exceeding THB 200,000 per day per account or increasing each transfer limit to THB 50,000 or more.
For the detective measures, banks have developed “Central Fraud Registry” to detect suspicious transactions and mule accounts in order to prevent and limit losses more quickly. Under the responsive measures, banks are required to set up a hotline call center, available 24 hours, seven days days a week, to faster handle with problems for financial fraud victims. Moreover, they prioritize creating protective shield by enhancing “financial literacy” to all groups of people. However, protection must “start with yourself”. People must constantly check financial transaction data, analyze and verify information thoroughly every time before investing, and always keep up with financial fraud news to be aware of deception and avoid being victimized.
TLCA President Angkana Tepprasertwangsa said that many listed companies have been exploited by fraudsters, causing damage to the victims. At the same time, listed companies are also the victims, particularly in terms of credibility. TLCA realizes such problems and will communicate to listed companies to join the campaign to create understanding among the public, along with taking legal steps in certain cases.
maiA President Wirat Sukchai said that given the current situation of investors being conned by fraudsters, there must be guidelines to protect entrepreneurs from being tricked by scammers to deceive money from the public, by keeping the public well-informed, while taking legal actions against the wrongdoers. At the same time, individuals must protect their own money not to be deceived, by observing various propaganda techniques and promises of impossible returns. maiA will collectively create immunity for both listed companies and the general public so as to reduce potential losses from such investment scams.
ASCO Chairman Pichet Sithi-Amnuai said that it is a good thing that nowadays people are interested in learning and investing more to meet their financial goals. However, they have to choose investment choices carefully as many fraudsters hide in the online world, especially social media. Therefore, people must verify whether the company in which they are going to invest is legitimate as well as analyzing whether the information and the promised returns are credible or not. ASCO and securities companies will jointly communicate and notify via omni-channels continuously.
AIMC Chairman Chavinda Hanratanakool, said that at present, there are many fraudulent advertisements inviting people to invest in mutual funds with returns that look too good to be true, within a short period of time. Such advertisement has nothing to do with the investment management companies. The investment management business operators must be authorized by the SEC only, and the advertisement inviting people to invest in mutual funds must be subject to the rules set by the SEC. Therefore, individuals who see fraudulent advertisements to persuade them to invest in various mutual funds by impersonating any company or executive, don't be lured into believing.
CMDF President Chanant Charnchainarong said that one of CMDF's key missions is to enhance knowledge and understanding about the capital market, investment, as well as the capital market development for investors and the general public. CMDF has supported funding for public education projects through a variety of media that can reach people of all genders and ages, including the project on immunization in investment scams to the public that will be disseminated soon.
The public is welcome to "jointly fight against investment fraud": check, point out and share if you have seen an invitation to invest with unrealistic high return, within a short period of time, or using leading organizations and celebrities as testimonials. Don't be lured into investing and examine the information carefully by inquiring directly to the organization referred to, or check the list of the individuals, business operators, or financial services to make sure they have been granted license by the regulators.
