Staying away from investment scams
As we approach the second-half of the year, most employees may have already received their mid-year bonuses in their respective payroll accounts. Unfortunately, scammers are also expecting the same. Recently, illegal investment schemes have been lurking around every corner, waiting for the most opportune time to fool you into “investing” your hard-earned money.
Metropolitan Bank & Trust Co. (Metrobank) warns the public on the many obvious signs indicating that an investment offer that you received via email, SMS, or call may be a scam. Spotting such attempts is possible, if you know what you are looking for.
Here are some things you can watch out for to know if you are the target of an investment scam:
To The Moon!
The biggest indicator of an investment scam is the offer itself. As the saying goes, “if it’s too good to be true, it probably is.” Investment scams would typically offer exaggerated return-on-investment rates such as “2% daily” or “30% monthly”.
Naturally, high-yielding investment opportunities are hard to resist especially if you have a decent amount of cash, such as your mid-year bonus, just sitting around in your payroll account. This is precisely the perfect moment for fraudsters to tempt you into giving them your hard-earned money.
Moreover, such attractive offers will come to your doorstep when you least expect them. You may have come across emails, SMS or calls from unknown senders who identifies themselves as investment experts.
Addressing the Address
Where a message originates from, matters. It’s easier to spot fraudulent email addresses because you can see the domain names (text after the ‘@’) used. Some scammers use public domain email addresses for their “investment company”.
Legitimate investment companies would always use custom domain names that are more professional. It also indicates that they have an existing website where you can get more information from.
As for SMS, they will often be just a random phone number with no sender ID. Though, sender IDs are not by any means an indicator of legitimacy, having none at all is an even bigger red flag.
For social media, check for a blue or gray checkmark next to the account name to ensure the account is legitimate. If said company claims to be a startup and has no verification marks, better to do more research.
Better sure than sorry
Remember, don’t fall easily into any investment offer. You’ve worked hard to earn your money, so work harder in protecting them. This could simply mean being prudent in doing basic research to verify that investment offer that piqued your interest.
For specific types of investments, it is best to look for a licensed broker or certified dealer with the Securities and Exchange Commission (SEC) to handle your investments. Inversely, you can also check SEC’s known investment scam checklist here.
Meanwhile, for Unit Investment Trust Funds (UITFs), you can always go to your bank and engage with their certified UITF marketing professionals to help you with your investment.
Watch the tone
Subject lines such as “URGENT” or tonality that is rushing you into making a decision about the investment offer may be dubious. Ideally, investment companies would always be mindful, professional, courteous, and calm when communicating with potential investors. Unlike scammers, they are not trying to scare investors into doing anything rash.
Metrobank further explained that a stable investment offer would always be “time-based” and not “timing-based”. Timing isn’t everything in investments. Promises of a quick payout can never be guaranteed even at the most favorable investment environments. Never rush into deciding to invest, and never let anyone rush you.
Sometimes these “urgent” messages will also ask you to give them sensitive information. This is another red flag. Never give them anything, especially bank information, username, password, passcode and One-Time Password (OTP), and the like.
Report the scam
While ignoring scam messages is fine, it’s more prudent to report them. This way, you can help break the chain of these illegal acts that burden our fellowmen who are just trying to make a living. If you should spot any suspicious messages, Metrobank advises to do the proper thing by calling your bank for verification or by reporting them to authorities like the National Bureau of Investigation (NBI) Anti-Fraud Division at (02) 8525-4093 or e-mail at afad@nbi.gov.ph
Whether you’re an individual or an organization who wants to contribute in our fight against fraud, Metrobank encourages the public to participate in the Scam Proof platform, an industry-wide initiative by the Philippine banking industry to promote fraud awareness and curtail financial fraud.
Join Metrobank in the fight against fraud. For suspected fraud, call Metrobank Contact Center at (02) 88-700-700, 1-800-1888-5775,or email us at customercare@metrobank.com.ph using "Report on Possible Fraud" as subject. Visit https://metrobank.com.ph/learn/fight-fraud for more fraud tips, news and advisories.
