Metro Manila (CNN Philippines, July 6) — The Securities and Exchange Commission says it has observed an increase in reports of scams during the pandemic.
“Sa kalagitnaan ng pandemic, tayo po ay nakapagtala ng 68 advisories laban po sa pag-aalok ng mga investments sa ating mga kababayan. At nauuso po ang ganito sapagkat ang ating mga kababayan ay nasa bahay, parating online, work from home, yung iba nawalan ng trabaho. At ito naman ay sinasamantala ng scammers,” Oliver Leonardo of the SEC’s Enforcement and Investor Protection Department told CNN Philippines on Monday.
[Translation: In the middle of the pandemic, we have logged 68 advisories against offers of investments to people. This has become a trend because people are at home, always online, working from home, and some have lost their jobs. Scammers are taking advantage of this.]
Leonardo said one of the most common and popular investment scams is the Ponzi scheme, named after a swindler named Charles Ponzi who devised the fraud in 1919.
He said traditionally, Ponzi schemes offer no products but lure in potential investors with promises of high daily returns for a minimum investment.
“Walang lehitimong negosyo ang pwedeng makapangako ng garantiyang sigurado kikita ka sa ganitong paraan. Ngayon, hinahaluan na nila ng produkto para masabi lang na kami ay lehitimo…pero nandoon pa rin yung pangakong kikita ka sa agarang panahon o yung tinatawag na get rich quick,” he said.
[Translation: There are no legitimate businesses that can guarantee that you will earn by this method. Now, they include products so they can claim they are legitimate…but there is still the promise of earning in a short period of time, or what is called a get rich quick (scheme).]
Leonardo said there are companies which offer legitimate investment opportunities and potential investors can verify if they are legitimate by visiting the SEC’s website.
However, he said apart from being registered, a company — as well as the people who work in it — has to have a license or a permit from the SEC.
Leonardo warned people against opportunities which seem too good to be true, adding that there are corresponding criminal liabilities for those who offer investments but do not have a license to do so.
Watch the interview here:
