Investment Scam: How to tell if its a scam or not?

How to Spot an Investment Scam?
How to Spot an Investment Scam?

Filipinos have been enticed to invest from companies using social media. A promised of 10% up to 40% interest per month or even more encourage them to join investments schemes.

Securities and Exchange Commission published an advisory of the investments companies that are not registered and warned the public against them.

These companies use facebook, youtube, linked in, twitter and other online networks for information about investing.

SEC warned against this 22 investment companies:

1) MGA BUSINESS ENTERPRISES
2) COOPHUB MULTIMEDIA SERVICES
3) JOGLE INNOVATIVE MARKETING
4) GLOBAL DREAM ZION
5) GRAPPLER
6) SHERPAN
7) BCT MARKETING/BCT MOTORCYCLE AND CAR TRADING
8) RTM/RTM PHARMACY AND GENERAL MERCHANDISE
9) DIAMOND MARKETING
10) FUSION MARKETING
11) FMARKET
12) CIRFUND
13) VIBEARN
14) ONEPRO
15) BCC/BCC COSMETICS TRADING
16) UNLISHOP COMPENSATION PLAN MARKETING
17) VUCC
18) BITRAIN
19) TCOIN
20) CROWD ROYALS
21) ADA FARM AGRI VENTURE
22) NERMIE MARKETING/NERMIE HEALTH AND BEAUTY PRODUCTS TRADING

The public was advised to be more vigilant and exercise extra caution to protect themselves and their money from scams.

A checklist can also be found on the SEC website on how to know if an investment is a scam or not?

Accordingly, before entering any forms of investment, one should think, examine and study.

If you come across any investment offer by phone, email, flyers, newspaper, ads or directly by any person you must ask questions to protect yourself and your money.

Ask the following questions:

1. Name of the person and the company making the offer.

2. Address of both the person and the company.

3. Phone number particularly the landline. Do not accept cellular phone numbers because the owner cannot be traced.

4. SEC Registered

SEC company registration alone is not enough. The company should have a SEC license A secondary license is given by SEC to the company after it has presented the list of requirements and that the company has duly proved that it is capable of the returns or profits it has promised.

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Those who act as salesmen, brokers, dealers or agents of any flagged company including soliciting through the internet may likewise be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code.

Some red flags that need to look out for according to the commission include;

  • It sounds too good to be true
  • The promise of “guaranteed” returns.
  • The pressure to buy RIGHT NOW

Investors who learn of investing opportunities should always be on the lookout for fraud. If you have a question or concern about an investment or think you have encountered fraud please contact the Enforcement and Investor Protection Department at telephone
numbers (02)818-6337 and (02)818- 5324.

Source: www.sec.gov.ph

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