Are there separate ways to prevent securities fraud?

To prevent securities fraud, the most important things are to verify whether the entity is a properly registered investment advisory firm, and not to be deceived by advertisements promising principal/high-return guarantees or unsubstantiated information.

Following these basic precautions can prevent a significant portion of typical securities fraud damage.

Recently, methods such as recommending soaring stocks or 1:1 customized investment consultations through stock leading rooms, online communities, and SNS are actively conducted, and many fall under illegal pseudo-investment advisory businesses.

Such methods are highly likely to lead to typical securities fraud, requiring special caution.

Paid consultations or investment recommendations provided by unregistered investment advisory firms are not legally protected and are very dangerous.

Also, principal guarantees, high-return guarantees, and loss compensation promises are mostly without objective basis, and are typical securities fraud methods that target investors in difficult situations.

Never be deceived by false or exaggerated advertisements such as "AI jackpot stocks" or "soaring stock profit guarantees."

Lastly, before making investment decisions, you must verify business registration status at the Financial Supervisory Service's financial consumer information portal "Fine," and develop the habit of verifying facts through objective materials such as corporate disclosures or reliable news.

Doing just this is a great help in creating a safe investment environment and preventing fraud damage.

Daeryun, Korea's 9th-ranked law firm (based on 2025 National Tax Service VAT filings), assists with cases through accumulated experience.