SFC urges brokers to enhance protection for clients against rising cases of SMS phishing

On June 6, 2025, the Securities and Futures Commission (SFC) issued guidance to licensed corporations (LCs) to enhance protections against a rise in SMS phishing attacks that have led to unauthorized trading incidents and financial losses for clients. Fraudsters have been deceiving clients into clicking on malicious hyperlinks that mimic legitimate LC websites, allowing them to capture login credentials and conduct unauthorized trades. The SFC’s recommendations include helping clients verify the identity of text message senders through the SMS Sender Registration Scheme, implementing robust monitoring mechanisms for unauthorized access, and increasing client outreach to raise awareness of potential scams. The SFC emphasized the importance of proactive fraud prevention measures to maintain public confidence in Hong Kong’s financial integrity. It also advised the public to avoid clicking on suspicious links and to report any unauthorized transactions immediately. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR84