You’ve probably come across a banner ad, or maybe even a comment on Facebook, claiming that investing your hard-earned money in cryptocurrency can see huge growth in a short period of time. Be careful because these ads are not what they claim to be.
Authorities are on high alert as there is a noticeable increase in fraudulent cryptocurrency investment ads luring in victims with fake get-rich-quick schemes. It is shameful that these scammers seek to take advantage of others given the difficult financial situation of many Filipinos. Some unsuspecting individuals have already fallen victim to these scams out of their own financial desperation brought about by the pandemic.
The Department of Finance (DOF) and other government agencies, such as the Securities and Exchange Commission (SEC), have repeatedly warned the public about these fraudulent investment ads. Yet many fake posts still circulate the internet. The DOF has called the attention of tech giants, Google and Facebook, urging them to tighten their regulations and further investigate these fraudulent investment schemes.
As the government shares the concerns of the people regarding the safety of their personal finances, its increased involvement is also due to the false claims that these ads have made regarding known public servants and celebrities promoting the use of their platforms.
READ MORE: Beware of these online investment scams using names of public officials and celebrities
The DOF and other government agencies have categorically denied any involvement with these fraudulent investment ads.
With the way the pandemic has affected us all financially, we urge the public to be cautious now more than ever. We recommend the following guidelines on how to spot and report fake ads.
Make sure the investment is legitimate
Guidelines provided by the Securities and Exchange Commission (SEC) include gathering first all information you can about an investment company before transacting with them.
Find out the name of the person or the company you’ll be dealing with. Ask for their business address and landline number as mobile numbers are hard to trace. Make sure you have a way to reach them should you have a concern or should anything go wrong.
After gathering all the necessary information, check with the SEC if the company is registered under them.
The SEC has provided a list of firms and individuals permitted to sell investment products on their website. Investors may refer to this list prior to dealing with anyone offering said products.: (SEC-registered firms and individuals https://www.sec.gov.ph/registered-firms-individuals-and-statistics/registered-firms-and-individuals/)
The SEC has also released public advisories to warn individuals against illegal and unregistered companies (SEC advisories https://www.sec.gov.ph/investors-education-and-information/advisories/)
Where to invest
Government-issued securities, such as bonds, are considered some of the safest investments. These bonds provide guaranteed returns, protect the principal, and aid in financing projects and programs that benefit the country.
Another feature of these bonds is their convenience. Many banks, in partnership with the government, have opened online facilities where individuals can easily purchase bonds. Retail investors may visit https://www.treasury.gov.ph/premyobonds, a dedicated online payment facility provided by the Bureau of Treasury. Individuals may also purchase the latest issue of government retail bonds through the mobile app Bonds.PH.
The government is also pursuing reforms to make investing in legitimate opportunities easier and simpler. The Duterte administration's proposed Passive Income and Financial Intermediaries Taxation Act (PIFITA) will simplify the tax regime for bonds and stocks by reducing confusion by decreasing the number of tax rates on financial transactions from 80 to 36. Once enacted, PIFITA will make it easier for everyday Filipino investors to put their money in safe and secure investment opportunities.
Where to report
Another factor that investors have to take note of is the legitimacy of investment instruments. Even if the assets being invested in are legitimate, investors must make sure that the method through which the investments are being made (the brokers, payment channels, other intermediaries) are regulated by Philippine authorities.
To verify the legitimacy of investment instruments, you may get in touch with the SEC Corporate Governance and Finance Department at (02) 8584-6103 or the Market and Securities Regulation Department at (02) 8584-5703.
The DOF reminds the public to remain on high alert. Should you encounter suspicious investment schemes, you may report them to the Enforcement and Investor Protection Department of the SEC through e-mail at [email protected] or through landline at (02) 8818-6337.
Report suspicious messages to the NBI Anti-Fraud Division at (02) 8525-4093 or e-mail at [email protected]. You may also send a message through the NBI’s website at www.nbi.gov.ph or their official Facebook account.
For suspicious online messages, report these to the PNP Anti-Crime Group (ACG) through its website at www.pnpacg.ph or hotline number (02) 8723-0401.