How can I spot an investment scam?
Be wary of any investment that promises high, guaranteed returns, especially when it comes from someone you recently met online. Before you invest, check with the Securities and Exchange Commission (SEC) that the company is registered and has a license to sell investments.
Many investment scams start as a friendship or a relationship. After weeks of chatting, the person shows you their "profits" and invites you to a platform. At first you can withdraw a little; then the money gets stuck and "fees" appear to release it. "Double your money" offers and pay-to-join schemes are the same trap.
Warning signs
- A promise of guaranteed returns, or returns far above normal.
- Pressure: "the slot closes today".
- A platform or app you cannot find on official sites.
- You are charged a fee to release a withdrawal.
- Check the SEC website for the company and for SEC advisories before you send any amount. Being registered as a company is not enough – it also needs a license to sell investments. For banks and e-wallets, check the BSP list of supervised institutions.
Frequently asked questions
- I was able to withdraw a little. So it is safe?
- No. Letting you withdraw small amounts is a common trick to make you invest more.
Want to know if there are warning signs about the person you are talking to? Veritaza checks the photos, the messages, the number, the email, the name and the ID, for ₱199.
Check a person