Vietnam's stock market watchdog warns of fake securities business scams targeting investors

A growing trend in the securities market involves firms posing as authorized securities companies to trick investors into making deposits into accounts, according to a major alert released by the State Securities Commission of Vietnam (SSC) on Wednesday.

This warning comes amid growing concerns over fraudulent activities preying on unsuspecting investors in the marketplace.

SSC said that there had been reports of organizations disseminating false information, falsely claiming that they have been licensed by the commission for securities business operations.

These scammers often provide misleading guidance, encouraging investors to transfer funds into their accounts, under the guise of legitimate investment opportunities.

The commission strongly advises investors to be extra cautious. Before engaging with any investment opportunities, individuals should thoroughly research the firms in question.

This can involve verifying the legitimacy of business licences and checking whether the company's information is accurately listed on SSC's official website.

An alarming instance of this fraudulent trend was highlighted recently, involving Norges Bank Investment Management.

SSC reported that a group operating on the messaging platform Telegram had falsified the bank's name and logo, attempting to attract investments by claiming to offer stock trading services.

It's important to note that Norges Bank Investment Management has confirmed it has no physical presence or services in Vietnam and strictly prohibits the use of its name for engaging Vietnamese investors.

In light of these developments, SSC has provided clear guidance for investors. If any investment fraud is suspected, it is essential to report these incidents to law enforcement authorities immediately. Quick action can help to verify, intercept and address any fraudulent entities, thereby minimising potential harm to investors.

The commission also emphasizes the importance of cross-referencing information obtained through social media and other platforms before making investment decisions. This practice can help prevent falling victim to scams aimed at misappropriating assets.