Thailand's Small Investors Warned Of Forex Fraud

[Thaising]

BANGKOK, Aug 6 (TNA) – Thailand's Ministry of Finance has warned small investors to beware of a group of persons who try to persuade them to invest in foreign exchange trading, saying the government gave a

permission for only financial institutions and institutional investors to invest overseas.

Chira Pankeeree, acting director of the ministry's Permanent Secretary's Office, said the baht had strengthened rapidly and fluctuated continuously. Consequently the government policy is to encourage

investors to bring money to invest overseas.

It had eased rules to cope with the baht volatility by allowing seven institutional investors including the Government Pension Fund, securities companies, and insurance firms, to invest in overseas securities.

However, a group of swindlers have taken the opportunity to persuade people to bring their money to speculate on foreign exchange rates such as the US dollar, the pound, the euro, and the Japanese yen

through the Internet and by direct contact with the group.

Mr. Chira said the group claimed the investors would receive handsome profits and that it had experts in the foreign exchange trading area, and that it is legal, which, the ministry official said, is not the case.

Mr. Chira said the group has approached investors in provinces such as Phuket, Krabi and Chiengmai to co-invest in amounts ranging from Bt300,000 to Bt1 million.

According to the mode of operation of the scam, investors are convinced by persons who appear to be reliable and knowledgeable, and that their head offices are located in Singapore, Hong Kong, and Taiwan.

Mr. Chira emphasised that neither the Ministry of Finance nor the Bank of Thailand permit individuals to trade foreign currency exchange since it bears hefty risks and is very volatile.