Investment scams rise amid Covid crisis: SEC

Investment scams rise amid Covid crisis: SEC

DAVAO CITY — The Securities and Exchange Commission-Davao Extension Office (SEC-DEO) has raised concerns over the continuing presence of investment scams that are looking for new ways to lure people on quick-rich schemes, especially amid the impact of the coronavirus disease 2019 (Covid-19) on the economy.

In a statement Friday, SEC-DEO office pointed out that investment scams have been “doubly challenging” as the perpetrators use the Internet in recruiting unwitting individuals–many of them poor people who have borrowed money in an attempt to earn big profits in very short periods of time.

SEC-DEO also found out that aside from using the traditional Ponzi and pyramiding schemes, some unscrupulous entities and individuals have also propagated new illegal investment schemes such as cryptocurrencies and the so-called foreign exchange trading.

“The Securities Regulation Code requires that the offer or sale of securities must be duly registered with the Commission and that the concerned entity or its agents must have appropriate registration and/or license to sell such securities. Those who want to solicit investments in forms of foreign exchange, on the other hand, also need to secure appropriate licenses from the Bangko Sentral ng Pilipinas,” the agency said.

It also urged anyone planning to join in any invest schemes to visit its website (www.sec.gov.ph) to be able to make informed decisions and avoid being duped by unscrupulous individuals.

“The public must always be prudent in dealing with recruiters because, most often, when offers are too good to be true, they really are. It added that those who have money to invest should ensure that the platforms that they are investing in must have a good track record and not just an overnight presence in cyberspace,” SEC-DEO said.

The public is also urged to report unauthorized investment-taking to the SEC Enforcement and Investor Protection Department through email at epd@sec.gov.ph. (PNA)

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