Have you come across an investment offer with extremely attractive returns that they are too good to be true? Do not be tricked. While there is a chance it might be true, there's also a bigger possibility that it might be a scam.
Think, examine and study the investment proposal, the Securities and Exchange Commission (SEC) said.
Here's a checklist of how to protect yourself and your money against investment fraud.
Get the following information:
1. Name of the person and the company making the offer;
2. Address of both person and company;
3. Phone number, particularly the land line. Do not accept cellular phone numbers as the owner cannot be traced; and
4. SEC registration as an investment taker.
Do remember that a SEC company registration does not grant authority to sell investment instruments, such as securities, bonds, commercial papers, or similar financial instruments.
According to the commission, only investment houses and financing companies with quasi-banking (QB) license and with SEC-registered securities may offer to sell the same to more than 19 investors.
Among others, only SEC-registered persons (brokers/dealers/salespersons) may offer or sell SEC-registered securities to the public.
Still not sure if you're dealing with a fraudster? Check if he/she is:
1. unwilling or hesitant to give information;
2. has no SEC registration;
3. claims to have QB license or SEC-registered securities; and
4. fails to give information or is not listed in the SEC website.
What to do?
1. Report to Enforcement and Investor Protection Department 5846337; and
2. Seek assistance from the National Bureau of Investigation (NBI) or police in case of emergency.
Get information, such as the number of investors, minimum placement, rate of return, etc. and verify the name of the company from a list of those qualified to offer investments at their website.
You may also call the SEC Corporate Governance and Finance Department at 584-6103 or the Markets and Securities Regulation Department at 584-5703.
In a “Give us this Day” TV guesting in Davao City last week, President Rodrigo Duterte ordered the shutdown of the Kapa Community Ministry International, Inc. over alleged involvement in pyramiding schemes.
The SEC earlier flagged Kapa for allegedly soliciting investments in the form of donations that it returns reportedly at a monthly interest rate of 30 percent.
It added that Kapa has no license and authority to receive investments in violation of Section 8 and 26 of the Securities Corporation Code of the Philippines. (PNA)
