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May 3, 2016 By iSensey

INVESTMENT SCAM CHECKLIST – Avoid Getting Scammed!

The allure of joining get-rich-quick-schemes is very real. Who wouldn’t want to have a high rate of interest? Who doesn’t want to have a huge return on investment? We all want that, but our desire for high ROI may led us astray into becoming a member of dubious “investment” opportunities.

Worst, though our intention is clean but through us, we may influence other family members and friends to join a ‘would be scam’ and in the end our loved ones suffer financial loses too.

Investment scam checklist

The Philippine government through the Securities and Exchange Commission or SEC has published a checklist on how to spot an investment scam in the making. When someone approach you egging you join them on a new money-making activity because returns are very attractive, astronomical even!, it’s time that you should pause and check if the business model being offered to you is a scam in the making, or a legit one.

HOW TO SPOT AN INVESTMENT SCAM

Financial experts have weighed in on how to identity a potential investment scam. We are sharing this in iSensey so we can warn our readers not to fall for one.

The source of this checklist is from the website of SEC itself, so these advises are government-backed.

If the offered business opportunity offer a high or fantastic earnings on your investments, you should

THINK >> EXAMINE >> STUDY

Don’t join just because this friend or that cousin is already a member. Be diligent in investigating the business opportunity.

ASK THESE QUESTIONS:

  1. Name of the person and the company making the offer.
  2. Address of both the person and the company.
  3. Phone number particularly land line. Do not accept cellular phone number(s) since the real number owner cannot be traced.
  4. SEC Registration as an investment taker. Please bear in mind the following:
  5. SEC company registration does not grant authority to sell investment instruments, such as securitities, bonds, commercial papers, or similar financial instruments.
  • Only investment houses and financing companies with QB (quasi-banking) license and with SEC registered securities may offer to sell the same to more than 19 investors.
  • Only SEC registered persons (brokers / dealers / sales man ) may offer or sell SEC registered securities to the public.

WALK AWAY! DO NOT DEAL WITH THE COMPANY / INDIVIDUAL IF…

  1. Unwilling or hesitant to give any of the information listed above.
  2. No SEC registration or appropriate license to engage in activities indicated in 4b or 4c.
**For a sample, check the SEC registration of Dragon One Network Trends Corporation.
  1. Claims to have QB license or SEC registered securities.
  2. Get the information such as the number of investors, minimum placement, rate of return, etc.
  3. Check and verify the name of the company from the list of companies who may offer investments as posted on the SEC website.
*You can also inquire from the SEC Corporate Governance and Finance Department (02) 584 6103 or the Markets and Securities Regulation Department at telephone number (02) 584 5703.
  1. Fails to give information or not listed in the SEC website.

If you encounter these individuals or companies, report it immediately to the SEC via the Enforcement and Investor Protection Department at contact number (02) 584 6637.

You not only protect yourself, but there are many others who will benefit from your effort in reporting. How? SEC will investigate the company or individual to validate your report as to legitimacy of the investment offer, and then once their investigation points out to a potential scam in the making, SEC will publish an Advisory or Warning to alert the public.

Don’t fall for an investment scam, put your money in legitimate investment vehicles via legit financial institutions. When offered an awesome business opportunity, use this checklist as your guide in determining legitimacy of the offer.

Help in the fight for investor education! Help the government it its fight against investment scammers.

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Filed Under: Potential Investment Scam, SEC Tagged With: Investment Scam, Investment Scam Checklist, Investors Education, Philippines Securities and Exchange Commission, Spot an Investment Scam

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