The Securities and Exchange Commission (SEC) has cautioned investors to be vigilant when dealing with unlicensed operators selling securities, derivatives, and digital assets, including foreign entities, as they may be promoting scams or fraudulent schemes.
According to the SEC, unlicensed firms that advertise their services through various channels, including exhibition booths, operate outside of SEC oversight and pose a risk for fraud.
Anek Yooyuen, the deputy secretary-general and spokesman for the SEC, stated that the commission is closely monitoring events and exhibitions that feature booths offering investment advice and soliciting services. If these activities are carried out by unlicensed operators or involve unapproved investment products—which are considered illegal under SEC regulations—the agency will request the closure of these booths and pursue legal action, which could lead to imprisonment and fines.
Should such activities violate other laws, the SEC will work with the appropriate authorities to take further action, added Mr. Anek.
The SEC advises event organizers to exercise caution when allowing unlicensed business operators to set up exhibition booths, as this could facilitate illegal activities.
To date, the agency has shut down over 1,800 fraudulent online accounts. Online fraud is prevalent on social media, he noted.
As of August this year, 497 individuals have reported cases to the SEC hotline in 2024, with 350 accounts classified as investment fraud, according to Mr. Anek.
The SEC notified platform providers, who successfully blocked 91.4% of all reported fraudulent channels, warning the public to stay alert for fraudsters who use various tactics to entice individuals into transferring money to personal accounts.
The Investment Fraud Hotline project, which started in November 2023 and ran until August 31 this year, resulted in the SEC blocking 1,863 fraudulent investment channels on platforms such as Facebook, Instagram, Line, and TikTok. Approximately 98% of the accounts that were requested to be blocked were removed by platform operators, as reported by the regulator.
“People should be cautious about investment solicitations made through social media. They must thoroughly verify any information before deciding to invest, and should reach out directly to the company or responsible personnel in the capital market,” advised Mr. Anek. “Avoid providing personal information or transferring money to individual accounts.”
Individuals who have fallen victim to scams can report information to the SEC through their website at www.sec.or.th/scamalert, via email at [email protected], or by calling 1207 and pressing 22.
