Increasing Impersonation Accounts on Social Media Worry Securities Firms

Recent cases of impersonation of securities firms and asset management companies on social media are on the rise. Direct messages (DMs) encouraging individual investors to invest under the guise of exchange-traded fund (ETF) management teams are flooding platforms. As a result, securities firms and asset management companies are facing significant challenges. They respond immediately to each impersonation account, but they lack effective measures to completely block them.

The IDs of these impersonation accounts often have slight variations in spelling or include hyphens, raising concerns that busy financial consumers may confuse them with official accounts. These accounts introduce themselves as ETF management teams and offer to provide investment materials for free.

Both asset management firms and securities companies are urging consumers to be cautious. A representative from Korea Investment Trust Management stated, "The number of impersonation cases online has increased, prompting us to post notices for investors and report these accounts on platforms. These impersonation accounts have intensified since early this year." A representative from Yuanta Securities also noted, "The number of cases where impersonation accounts reach out has increased, and we are informing consumers through our website's consumer protection section, emphasizing the importance of preventing potential harm."

So far, there have been no reports of large-scale damages, but the concerns in the securities industry are significant. There is a risk that the company's brand value could be damaged, and they must proactively prevent potential financial fraud against consumers.

The challenge lies in the difficulty of responding effectively. Even if impersonation accounts are blocked, new accounts can be created, requiring ongoing responses. A representative from Mirae Asset Securities explained, "When we discover impersonation accounts, we request the platform companies to block them, but it is often challenging to respond actively since many cases involve foreign accounts."

The Financial Supervisory Service is also aware of this situation. A representative stated, "We have implemented an AI-based real-time monitoring system to track investment fraud involving impersonation of financial companies. Given the prevalence of crimes impersonating legitimate financial institutions, we advise against using accounts in someone else's name and encourage verification of employee status."