CEBU, Philippines — The Cebu Bankers Club has joined authorities in warning the public against investment scams.
CBC president Neil Darwin Credo stressed the public should already learn from the past, saying bogus investment firms aren't a new thing.
"We should learn the lessons as we already had scams in the past," he told The FREEMAN yesterday when sought for comment following the Securities and Exchange Commission's latest warning against certain bogus investment entities.
When investing, he said the public should be very cautious and should only transact with registered investment companies.
He said the returns promised by investment scams are usually big and tempting, that's why most are lured to give in especially when not educated about the risks it involves.
He cited a case where some retirement funds were gone in a matter of months because of the investment scams.
"We advise the public to take care of their hard earned money and listen to the advisories given by government agencies like SEC or DTI (Department of Trade and Industry," Credo said.
The CBC official urged the public to put their money in legitimate investments such as those offered by banks and other investment firms.
In a May 31 advisory, the SEC warned against some investment scams that are reaching out to prospective investors through social media.
“Investors are increasingly turning to social media, including Facebook, YouTube, Twitter, LinkedIn and other online networks for information about investing,” the SEC said.
The SEC identified these companies are MGA Business Enterprises, Coophub Multimedia Services, Jogle Innovative Marketing, Global Dream Zion, Grappler, Sherpan, BCT Marketing/BCT Motorcycle and Car Trading, RTM/RTM Pharmacy and General Merchandise, Diamond Marketing, Fusion Marketing, FMarket, Cirfund, Vibearn, Onepro, BCC/BCC Cosmetics Trading, Unlishop Compensation Plan Marketing, VUCC, Bitrain, Tcoin, Crowd Royals, ADA Farm Agri Venture and Nermie Marketing/Nermie Health and Beauty Products Trading.
According to SEC, these entities offer investment contracts in Facebook pages or secret Facebook groups and chatrooms.
"This investment scheme ordinarily collapses as fast as they are created while leaving its investors behind and unable to recoup their investments," the corporate regulator said.