The Securities & Futures Commission warns investors to be more vigilant as fraudsters are getting more sophisticated with scams appearing in many new guises amid increasing market volatility.

In its Dr Wise column published online today the commission said fraudsters have been quick to repackage their investment scams and use more sophisticated methods to lure investors.

As in the past fraudsters normally posed as licensed brokers or investment advisors and preyed on investors looking for investments with very attractive returns.

New tricks

Some fraudsters disguise their true identity and give their scam credibility by using fake broker or investment advisor licences. They make their scams more credible by, for example, creating fake corporate websites and giving links to fake regulator sites.

Fraudsters typically ring up investors touting stocks trying to lure them into opening stock accounts. In many cases the scams are exposed by investors checking the commission's website to verify the identity of the suspected person or company.

The commission warns investors against any suspect operations or individuals it has become aware of through its alert list, which currently contains more than 450 names.

To protect themselves against such scams investors must verify with proper authorities the identity of any suspected person or firm. When verifying information investors must not rely on details provided by brokers or investment advisors.

Investors should also ignore cold calls and report all suspicious activities to Police, the commission or the Monetary Authority. They must not give away personal records or send any money until the operation is confirmed legitimate.