Victor Dawes, president of the Investor Financial Education Council, said while interest in investing is widespread in the city, there are still ever-evolving reminders to keep residents informed and their money safe. said that a list of is essential.
“I think people are more knowledgeable than ever before, but unfortunately they are getting smarter and smarter when talking about potential pitfalls and fraud,” said Dawes, senior lawyer and president of the Hong Kong Bar Association. he said.
The number of investment fraud cases has continued to rise in recent years, despite various authorities such as parliament and the police repeatedly warning the public about the traps and issuing warnings through fraud detection systems.
The unit processed 5,105 reports of online investment fraud last year, an increase of 170% from 1,884 in 2022. Last year’s losses amounted to HK$3.2 billion (US$409 million), 250% more than the amount recorded in 2022.
Dawes said these cases were not surprising, but rather emphasized the importance of constant reminders.
“I think you could say we all have a little bit of a short memory… But if you look at recent scams, for example, many of them are advertised based on very high and unrealistic benefits, and people are being fooled by it,” the chairman said. He said.
“This has happened many times throughout history, which is why we are re-emphasizing a long-standing and important message.”
Dawes added that investors should fully understand the characteristics and risks of financial products before making an investment, and should seek out reliable sources of information.
“You shouldn’t blindly follow friends or people who make money, or just chase catchy headlines and ads on the internet,” he warned.
The city council has been running a series of campaigns over the years using cartoon videos in online seminars, but its latest initiative has decided to ditch computer screens as a platform for its appeal.
Last month, the public body opened a learning center at The Mills in Tsuen Wan, allowing the public to play games in an immersive environment to understand key principles of investing.
1 million SIM cards deactivated in Hong Kong because owners did not register their names
1 million SIM cards deactivated in Hong Kong because owners did not register their names
In one game, players use shovels to irrigate and fertilize a plot of farmland, competing to harvest as much produce as possible while making investment decisions about its operation.
The game’s graphics and creative format aim to reinforce the Council’s message to think twice before making decisions and understand investment products and your own risk appetite.
According to Dawes, these principles not only help avoid fraud; Losses may occur if investors do not yet understand the nature of complex investment products or act beyond their risk tolerance.
“Whenever there is high-profile fraud or fraud, the following questions arise: [whether] We have done a lot of investor education,” Dawes said.
“My view is that no matter how hard we try, we cannot eliminate fraud. This has been happening throughout history and we must constantly remind the public to be vigilant. [ …] We just do our best. ”
