Is there a separate way to prevent securities fraud?

To prevent securities fraud, the most important thing is to confirm whether the party is a duly registered investment advisory business and not to be deceived by advertisements guaranteeing principal or high returns, or by information without any basis.

Observing just these basic precautions can prevent a considerable portion of typical securities fraud damage.

Recently, methods that promote recommendations of sharply rising stocks or one-on-one tailored investment consulting have been actively carried out in stock 'leading rooms,' online communities, social media, and the like, and a considerable number of them constitute illegal quasi-investment advisory businesses.

Such methods have a high possibility of leading to typical securities fraud, so particular caution is needed.

Paid consulting or investment solicitations provided by an investment advisory business that is not duly registered receive no legal protection at all, so they are very dangerous.

In addition, promises such as guarantees of principal, guarantees of high returns, and compensation for losses in most cases have no objective basis, and are typical securities fraud techniques that target investors' difficult situations.

You must never be enticed by false or exaggerated advertisements such as 'AI jackpot stocks' or 'guaranteed profits on soaring stocks.'

Finally, before making an investment decision, you need the habit of necessarily checking whether the business is registered on the Financial Supervisory Service's financial consumer information portal 'Fine,' and verifying the facts through objective materials, such as corporate disclosures or reliable news.

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

Daeryun (Korea's 9th-largest law firm based on 2025 National Tax Service value-added tax filings) assists with cases based on its accumulated experience.