The Hong Kong Securities and Futures Commission has warned investors about sophisticated frauds that misuse the name of the Investor Compensation Fund to target people who have already suffered investment losses. Recent cases involved fraudsters, sometimes linked to the same syndicates behind the original losses, impersonating SFC executives or legal professionals and claiming victims could recover money through the ICF if they first paid additional "deposits" or "handling fees", leading to a second round of losses. The SFC stressed that claims against the ICF carry no fee and do not require any upfront transfer of funds. Compensation is limited to monetary losses caused by the default of a licensed intermediary or authorised financial institution in Hong Kong and only for securities traded on the Stock Exchange of Hong Kong or through the Northbound link of Stock Connect, and futures contracts traded on the Hong Kong Futures Exchange. The fund does not cover losses from share price fluctuations, poor investment performance, or scams involving unlicensed entities. The SFC also said it does not contact investors through social media or instant messaging platforms to seek payments for compensation claims, and that anyone unsure about such approaches should check with Investor Compensation Company Limited or the SFC through official channels.
Hong Kong Securities & Futures Commission2026-05-19
Hong Kong Securities and Futures Commission warns of scams misusing the Investor Compensation Fund to extract fees from loss-hit investors
The Hong Kong Securities and Futures Commission warned of scams where fraudsters misuse the Investor Compensation Fund name and impersonate SFC executives or legal professionals to extract extra “deposits” or “handling fees” from already‑defrauded investors. The SFC stressed that Fund claims are free, cover only monetary losses from defaults of licensed intermediaries or authorised financial institutions in Hong Kong on specified securities and futures, and exclude market losses or scams involving unlicensed entities. It added that it never uses social media or instant messaging to seek payments and urged investors to verify approaches through official channels.