The Securities and Exchange Commission (SEC) has recently issued an advisory (as seen below) on investment schemes that may involve social media, warning the public of the individuals and groups involved in such activities. The advisory defines the activities behind the scheme, and advises the public to take precautions in joining or investing in these groups.
In support of this view, Coins.ph does not endorse or is affiliated in any way with such activities or products. Moreover, we have a zero tolerance policy on fraudulent activities and potentially scamming practices. In a separate article, we have enumerated tips on how you can avoid investment schemes and other online scams. We urge our customers to be extra diligent with their funds and to act within our User Agreement.
The Commission has received information that individuals or group of persons
representing various unregistered investment entities are enticing the public to invest their
money in high-earning products.
The Commission is issuing this Advisory to help Investors be better aware of
fraudulent investment schemes that may involve social media.
Investors are increasingly turning to social media including Facebook, Youtube,
Twitter, LinkedIn and other online networks for information about investing.
Some examples of investment companies that are soliciting investments through the
use of Social Media are as follows:
1) MGA BUSINESS ENTERPRISES
2) COOPHUB MULTIMEDIA SERVICES
3) JOGLE INNOVATIVE MARKETING
4) GLOBAL DREAM ZION
7) BCT MARKETING/BCT MOTORCYCLE AND CAR TRADING
8) RTM/RTM PHARMACY AND GENERAL MERCHANDISE
9) DIAMOND MARKETING
10) FUSION MARKETING
15) BCC/BCC COSMETICS TRADING
16) UNLISHOP COMPENSATION PLAN MARKETING
20) CROWD ROYALS
21) ADA FARM AGRI VENTURE
22) NERMIE MARKETING/NERMIE HEALTH AND BEAUTY PRODUCTS TRADING
The schemes that may be employed by the above-mentioned entities are described
1) They offer their investment contracts in the corresponding Facebook pages or secret
Facebook groups and chatroom, Youtube etc;
2) They offer unrealistic return on investments ranging from 10% to 400% per month;
3) They require their interested investors to pay their initial investments by depositing
their money to a specific bank account, Coins.Ph account, GCash, through a money
remittance company and through face-to-payment with one of the entity’s agents;
4) The investor shall then send through a private message a copy of the proof of the
deposit to the offeror who shall send his confirmation after validation;
5) They usually deliver payouts through the above-mentioned methods; and
6) They usually claim that they invest their funds in forex, bitcoin and other
cryptocurrencies to justify their earning capacity.
This investment scheme ordinarily collapses as fast as they are created while leaving
its investors behind and unable to recoup their investments.
The public is hereby informed that such investment schemes, whether with the use
of money or cryptocurrencies, are considered as securities subject to the regulatory
authority of this Commission. The recruitment of investor members under the guise of
sponsoring a person into the system is likewise considered a form of investment solicitation
or a sale of securities. The offering or sale of securities to the public without a permit or
license from the Commission is a violation of Section 8.1 of the Securities Regulation Code.
Thus, any person who, directly or indirectly, in connection with the purchase or sale
of any securities, (1) employ any device, scheme, or artifice to defraud, (2) obtain money or
property by means of any untrue statement made, in light of the circumstances under which
they were made, not misleading; or (3) engage in any act, transaction, practice or course of
business which operates or would operate as a fraud or deceit upon any person shall likewise
be prosecuted and held criminally liable under Section 26 of the Securities Regulation Code
and penalized accordingly pursuant to Section 73 of the SRC.
Tips to Help Avoid Investment Scam
Lookout for these Common “Red Flags”:
It sounds too good to be true. Any investments that sounds too good to
be true probably is. Any investment opportunity that claims you’ll receive
substantially more than that could be highly risky – or be an outright fraud.
Be extremely wary of claims on a website that an investment will make
“INCREDIBLE GAINS” or has “HUGE UPSIDE AND ALMOST NO RISK!”
The promise of “guaranteed” returns. Every investment entails some
level of risk, which is reflected in the rate of return you can expect to
receive. If your investment is 100% safe, you’ll most likely get a low return.
Most fraudsters spend a lot of time trying to convince investors that
extremely high returns are guaranteed or that the investment is a can’t miss
Pressure to buy RIGHT NOW. Don’t be pressured or rushed into buying
an investment before you have a chance to think about – and investigate -
the “opportunity”. Be especially skeptical of investments that are pitched
as “once-in-a-lifetime” opportunities, particularly when the promoter bases
the recommendation on “inside” or confidential information.
Investors who learn of investing opportunities should always be on the lookout for
fraud. If you have a question or concern about an investment, or think you have encountered
fraud please contact the Enforcement and Investor Protection Department at telephone
numbers (02)818-6337 and (02)818- 5324.
For the guidance of the public.