FSS: "Remedies for Damages from Illegal Operators Are Difficult, So Exercise Caution"
On October 29, the Financial Supervisory Service announced that it had issued a consumer alert at the "caution" level, as cases of illegal investment leading encouraging high-return overseas stock investments through social networking services (SNS) are on the rise.
According to the Financial Supervisory Service, scammers post information and videos about high-return U.S. stock investment strategies on SNS platforms such as Threads, then lure investors into private chat rooms on platforms like Telegram.
The scammers entice investors by recommending that they buy or sell specific U.S. stocks at certain prices on specific dates, providing a small-scale investment success experience. Their typical method involves disappearing after selling the stocks when a surge in purchases by investors causes the stock price to spike.
The Financial Supervisory Service warned consumers to be suspicious if strangers on SNS recommend overseas stock investments.
They advised that consumers should verify through the Financial Supervisory Service's financial consumer portal "FINE" whether those offering investment advice are registered or reported investment advisory businesses or similar investment advisors. It is important to check the company name, operator identity, and contact information.
The Financial Supervisory Service emphasized that it is difficult to seek remedies if harmed by illegal operators, so consumers should exercise caution.
Recently, most online financial investment scams have been carried out overseas, making it difficult to crack down on illegal operators and take legal action. Even if damages occur, it is extremely difficult to freeze or recover criminal proceeds.
The agency reminded consumers not to forget that online information can be falsified or manipulated. They also highlighted that there are many cases where people, for a small fee, write blog posts or produce videos as requested by illegal operators.
A representative from the Financial Supervisory Service stated, "Victims of illegal investment leading rooms often suffer irrecoverable financial losses, so extra caution is required," adding, "We hope that consumers familiarize themselves with the precautions and response guidelines to prevent unfair damage."
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