Hong Kong Securities Regulator Warns of Fraudulent Compensation Fund Scams

The Hong Kong Securities and Futures Commission (SFC) has issued a warning to the public to remain vigilant against scams involving the misuse of the Investor Compensation Fund's name. According to ChainCatcher, these fraudulent schemes often result in victims suffering additional financial losses. Scammers typically target individuals who have previously incurred investment losses, falsely claiming that they are eligible for compensation from the fund. Victims are then asked to pay an extra 'deposit' or 'fee' to facilitate the compensation process, leading to further scams. The SFC emphasizes that it does not contact investors via social media or instant messaging platforms to request payments related to compensation claims.