Lawmaker urges stronger safeguards as investment scams evolve

[Photo: Renato Marques]

Lawmaker Vong Hou Piu has urged the government to strengthen its preventive measures against investment scams, warning that increasingly sophisticated schemes could expose more residents to substantial financial losses.

In a written inquiry to the government, Vong said investment scams promising “guaranteed profits” or “low risk and high returns” remained a concern in Macau, despite an overall decline in telecommunications and online fraud cases.

He pointed to the recent “Fun Coffee” case in early August, in which Macau and Hong Kong police jointly dismantled a cross-border investment scam that allegedly used free coffee-tasting events to attract potential investors. The scheme reportedly relied on a pyramid-style model, encouraging participants to recruit friends to join.

In that case, at least 265 people in the two jurisdictions were defrauded, with losses exceeding HKD97 million.

Data from the Judiciary Police (PJ) shows that in Macau, more than 40 people were reportedly affected, while nine middle-aged and elderly victims who filed police reports lost a combined MOP3.6 million.

The lawmaker said the scale of the losses warranted greater emphasis on prevention, particularly as fraudsters continue to adapt their methods.

“Based on the principle of risk prevention, the authorities should take more proactive preventive measures before investment scams in Macau become widespread,” he said.

He asked whether the government would establish dedicated early-warning mechanisms and risk indicators for emerging forms of investment fraud, including schemes involving virtual assets and artificial intelligence-related investments.

Vong also called for more targeted outreach to middle-class residents and professionals, arguing that investment fraud should not be viewed solely as a problem affecting the elderly or less-educated people.

He asked whether authorities could work with professional bodies and industry associations to provide specialized warnings to financial professionals, corporate managers and retired professionals.

“Investment scam victims are not limited to the elderly or people with lower levels of education,” Vong said, noting that highly educated professionals and people with greater financial resources could also become targets.

For older residents, the lawmaker said existing measures such as anti-fraud applications and payment-transfer warnings might not be sufficient to reach those with limited digital literacy.

The PJ has continued sending officers to markets, parks and teahouses to explain common scam tactics and fraud-prevention measures, including how to use anti-fraud tools, according to Vong.

He asked whether the government would consider establishing a regular door-to-door fraud-prevention outreach program, particularly for elderly residents who have mobility difficulties or rarely leave their homes.