Hong Kong’s Securities and Futures Commission (SFC) has taken significant action against fraudulent websites masquerading as reputable local cryptocurrency exchanges. In a proactive move to safeguard investors, the SFC announced on March 4 that it has identified and blocked several fake domains attempting to impersonate two licensed crypto trading platforms in the region, namely OSL Digital Securities and Hash Blockchain Limited (HashKey).
Identifying and Blocking Imposters
The SFC’s vigilant efforts led to the discovery of six counterfeit websites, including hskexpro.com, hskex.com, hskexs.com, hskexit.com, oslexu.com, and oslint.com. These websites were found to be part of a scheme causing issues for users, such as difficulties with fund withdrawals and excessively high fees. Following the SFC’s findings, the Hong Kong Police Force was requested to restrict access to these malicious sites.
Raising Public Awareness
This recent crackdown is part of a broader initiative by the SFC to combat online fraud. The regulator has also updated its crypto alert list, which now features the newly identified fake sites along with others, including eight domains previously blacklisted for impersonating the MEXC exchange. The SFC encourages investors to consult its public register and the list of licensed virtual asset trading platforms to verify the authenticity of any crypto trading platform.
The Challenge of Spotting Fake Websites
Blockchain security expert Bartosz Barwikowski from Hacken emphasizes the difficulty in distinguishing genuine websites from fraudulent ones, particularly for first-time visitors. He suggests that while checking regulatory websites for the correct URL is an option, it’s often overlooked by the majority. Barwikowski advises users to rely on mobile apps, which are harder to counterfeit, and to seek information from trusted third-party websites or government sources.
Recommendations for Avoiding Scams
To minimize the risk of falling victim to such scams, Barwikowski offers two key pieces of advice: prefer using mobile apps of known entities with substantial reviews and consult trusted third-party or governmental websites for verification. He warns against relying solely on search engine results or social media channels, which can be manipulated by scammers.
Regulatory Developments
The SFC’s announcement coincides with the closing of the latest licensing cycle for crypto exchanges on February 29. Exchanges that missed the deadline for application submission are required to cease operations in Hong Kong within three months, underscoring the SFC’s commitment to regulating the crypto industry and protecting investors from fraudulent activities.
