iSavta | 17.04.2023

Networking scams have become increasingly prevalent in the Philippines, with many individuals falling victim to the promise of fast returns on investment. These schemes often involve convincing individuals to invest large sums of money, only to be left with nothing in return. In this article, we will discuss how to protect yourself from these scams and provide examples of individuals who have been scammed in the Philippines.

Examples of Networking Scams in the Philippines:

• In 2019, the Philippine National Police's Anti-Cybercrime Group (PNP-ACG) arrested a man for operating a Ponzi scheme that promised a 200% return on investment. The scheme, which was advertised on social media, was able to scam over 10,000 individuals out of a total of PHP 1 billion.
• In 2020, the Securities and Exchange Commission (SEC) issued a warning against a networking scheme that promised a 20% return on investment every 15 days. The scheme, which was operated through a website, was able to scam thousands of individuals out of a total of PHP 500 million.

How to Determine if a Networking Scam is Legit:

• Research the company and its management. Check if they are registered with the SEC and if they have any previous history of fraud.
• Be wary of fast returns on investment. Legitimate investments usually take time to yield returns.
• Ask for detailed information about the investment opportunity. Scammers often provide vague or misleading information.
• Be skeptical of unrealistic promises and guarantees.
• Do not invest more than you can afford to lose.

Red Flags to Watch Out For:

• High-pressure sales tactics. Scammers often use pressure tactics to convince individuals to invest quickly.
• The requirement is to recruit others to join the scheme. This is a common tactic used in pyramid schemes.
• Lack of transparency. Scammers often hide important information or refuse to provide it.
• No physical address or contact information. Scammers often use virtual offices or temporary addresses to avoid detection.

Tips for Protecting Yourself from Networking Scams:

• Do your own research. Don't rely solely on the information provided by the scammer.
• Be skeptical of promises of fast returns on investment.
• Don't invest more than you can afford to lose.
• Don't provide personal information or financial information to strangers.
• Report any suspicious activity to the proper authorities.

It's important to remember that the promise of fast returns on investment is often too good to be true. Networking scams can be difficult to detect and can result in significant financial loss. By being vigilant and doing your own research, you can protect yourself from these schemes. Remember to always be skeptical of unrealistic promises and guarantees, and to never invest more than you can afford to lose.

If you suspect you have been scammed or have been approached by a scammer, report it to the SEC or the PNP-ACG. They will be able to investigate the matter and take the necessary steps to protect you and others from these fraudulent schemes.

In conclusion, networking scams can be very convincing and result in significant financial loss. By being aware of the red flags and tips discussed in this article, you can protect yourself from these schemes and avoid falling victim to them. Remember to always do your own research, be skeptical of unrealistic promises, and never invest more than you can afford to lose.