How to avoid the new online fraud schemes
According to TransUnion, the Philippines recorded a high incidence of online fraud. In their Global Consumer Pulse study, it states that 44% of consumers in the Philippines have been targeted by online and SMS scams in the first three months of 2021.
Apart from increasingly realistic phishing and smishing schemes, the pandemic has given rise to scams of different forms, like "winning" an online raffle, "online business opportunities" that are actually Ponzi schemes, and misrepresented charity drives.
In this article, we discuss how to avoid online scams by learning how to differentiate them from legitimate offers and projects.
Email phishing
Have you ever received an email asking you to confirm your account details by clicking on a link? This is an example of email phishing, one of the most common online scams in the Philippines.
Scammers will trick you into filling out a form with your personal details and credit card information on a fake bank website that looks exactly like the real one. In the Philippines, email phishing is listed as the top cybercrime in the country during the pandemic.
While email phishing has been prevalent even before the pandemic, it is still crucial to learn how to avoid online scams like this. The most effective way is to check the legitimacy of the website via its URL and content.
A fake website typically looks outdated, filled with grammatical and spelling mistakes, uses old or altered logos, and has a different branding tone and voice. Search for the real website of the bank first to verify the URL and its content. You can also check the protocol part of the URL of the site to see if it's secured. The URL should start with https://, not "http://".
SMS and online raffle scams
Some email and SMS scams come in the form of messages telling you that you've won a TV, a trip to a luxurious destination, a huge cash prize, or something similar. The only condition to claim your supposed prize is to contact a point person and deposit a minimal fee to a bank account. However, once you've made the deposit, you won't be receiving any prize at all.
How do you avoid raffle scams like these? Simply ignore and delete the message, especially if you didn't join a raffle in the first place.
Also, raffles need specific government permits to operate. If the so-called raffle doesn't have a permit number from the Department of Trade and Industry, you're likely dealing with a scam.
Online investment opportunities
Investing is a great way to make your money work for you. However, not all types of investments are safe and legitimate—some of them are online scams. Many fraudsters use websites and social media to lure investors with quick get-rich schemes, and then run away with their money.
One of the most common types of online investment scams in the Philippines is the online paluwagan (onpal). At first glance, it works like the traditional paluwagan. Members pool their funds and take turns receiving money based on their corresponding payout schedules. Sending and receiving of payments are made through remittances, wire transfers, or cash deposits.
But take note that the onpal operates like the Ponzi scheme. People who recruit others to join the onpal are promised large profits of 10% to 75% within a a week to 90 days. However, many onpal members report never getting their investments back.
Other types of online scams like these include fake online lending companies, Bitcoin investment scams, and offshore stock trading scams.
Learning how to avoid online scams needs effort on your part. If you want to invest, take the time to fully understand where you'll be putting your money into.
You can visit the Securities and Exchange Commission (SEC) website to verify if a company is registered and authorized to run investment activities. If the company is not included in the list by SEC, they're most likely online scams.
Misrepresented charity drives
Filipinos have always been compassionate by nature. That’s why when there’s a natural calamity or global pandemic, we’re quick to offer financial support. Thanks to online banking, activities such as crowdfunding and other relief-driven projects became more accessible to everyone.
However, some scammers leverage unfortunate events to victimize unknowing donors. For instance, they can set up a bank account and pretend to gather donations for a cause even though in reality, the money ends up in the pockets of scammers.
To avoid such scams, it's always better to donate to genuine non-profit organizations instead of sending money directly to individuals. Always make sure to check the source. An upright donation drive must have complete details about its cause, initiative, and beneficiaries.
Another important thing to note is to not share your financial information with donation drives. Legitimate donation efforts headed by reputable organizations won't ask for your credit card details or bank account information.
Stay vigilant against online and SMS scams
When doing online transactions, it pays to be careful—even suspicious when needed. Always verify everything that you receive, from emails to text messages and the links that pop up on your browser. Sometimes, it's as simple as not believing in everything you read and watch online.
At Metrobank, we take fraud and online scams seriously. Help us win the fight against online fraudsters and scammers by staying vigilant and informed about these illegal activities. Check the Metrobank website regularly for tips, news, and alerts on fighting fraud. Learn the most effective ways to dealing with online and SMS scams and make security a top priority.
