Walk away from big promises

It’s a new year but also another year for scammers to take advantage of. If someone tells you she always beats the market or guarantees a certain level of return or outlandish returns (>100% in six months), decline the offer. While there is always risk involved with any investment, no truly qualified, honest financial planner/investor can guarantee investment results.

The truth is, investment schemes can and often do sound plausible, well thought out, and very tempting. In fact, these fraudsters are highly organized, articulate, skilled at flattery, urgency, scarcity and sales to convince you to part with your money. They are also armed with brochures, fake degrees/track records and claims of association with prominent brands or successful companies or individuals.

The Internet is a great tool for investors. It makes researching investments easy. We can follow almost any lead and check up on the claims we hear. It’s all at our fingertips. But the same is also true for scammers, they have the same access to technology and strategies to make their fraud even more believable.

NEW SEC ADVISORIES:

The public is reminded that an advisory against the following has been raised by the Securities and Exchange Commission (SEC).

BIT2CASH Trading/BITTHROUGH CASH - They use a INVEST-WAIT-EARN method, which promises 50% weekly income depending on the amount invested for a minimum amount of Php1,000 up to Php500,000 with a lock-in period of 1 month. They also have a referral reward option, which basically lets investors earn from referring others (10% direct referral bonus).

The contributed funds are supposedly used to fund different investment income sources from casino finance, forex trading, real estate, and adsense earnings.

Jethclick/Jethclick International (and related affiliates) - Offers account opening by buying their 7-in-1 whitening soap worth Php1,000-1,500. Aside from that, one can also earn from direct referral (Php100/person), pairing bonus (Php100/pair in your binary), unilevel bonus (Php10/indirect referral under 2nd and 5th levels), as well as a clicking platform where you can access click-to-earn method.

Teachers Financial Coaching Program (TFCP)/Teachers Financial Freedom Program (TFFP)/Elite Teachers Financial Program (ETFP)/Teachers Financial Program (TFP) - Not only the SEC but also DEPED (Department of Education PH) has issued a warning against participating in this so called program.

Teachers are enticed to invest Php115,000 or loan from a bank an equivalent amount in exchange for Php11,000 worth of Royale beauty products/food supplements and a cheque amounting to Php10,500. The investor is then required to recruit new members to further receive another Php11,000 for each recruit. Training seminars on financial literacy and promises of a debt-free life, double net pay, owning a car, travel with family and savings in the bank are likewise offered by the entities.

COMMON INVESTMENT RED FLAGS REMINDER:

• If it sounds too good to be true.. it is.
• A promise of “guaranteed returns” (they don’t exist).
• Use of flattery, urgency, and scarcity.
• When they don’t know or have an SEC Secondary license.
• Use of FOMO (Fear of Missing Out). Pressure to send/invest/buy right now.
• Small or ‘FREE’ favors (free lunch or workshop).
• Just because something is advertised on television or radio or any other media platform does not guarantee its legitimacy. Almost anyone can pay for online adverts these days.

Never assume that advertisements bestow honesty on a company. Be skeptical.

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Should you have any information regarding sketchy investment solicitations, please contact the Enforcement and Investment Protection Department (EIPD) at 8818-6047 or epd@sec.gov.ph.

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