Manila, News reports: Police alert the public to a rise in foreign exchange (forex) trading scams and urge them to thoroughly vet any investment opportunities before committing their money.
The Philippine National Police-Anti-Cybercrime Group (PNP-ACG) emphasizes the need for extensive research and background checks on individuals or groups offering investment opportunities to avoid falling victim to scams. Brig. Gen. Ronnie Francis Cariaga, Acting Director of the PNP-ACG, stressed that scammers often employ sophisticated tactics to appear legitimate, making due diligence crucial.
Recent Incident Highlights Risks
This warning follows an incident involving a 21-year-old Pakistani national who convinced a victim to invest P380,000 in forex trading. The victim met the suspect, known only as “Hazat,” in Cagayan de Oro City. Hazat initially built trust by befriending the victim and presenting what appeared to be a lucrative investment opportunity.
After receiving the money, Hazat became unresponsive, only contacting the victim to request an additional P100,000. Sensing something was amiss, the victim sought assistance from authorities, leading to Hazat’s arrest during an entrapment operation in Sta. Mesa, Quezon City, on May 8.
Legal Consequences and Warnings
Hazat is currently in police custody and will face charges for violating Article 315 (swindling or estafa) of the Revised Penal Code and Republic Act (RA) 11765 (investment fraud), about Section 6 of RA 10175 (Cybercrime Prevention Act of 2012). These charges underscore the serious legal consequences of such fraudulent activities.
Brig. Gen. Cariaga highlighted the importance of being meticulous when making investments, regardless of the amount. He encouraged the public to conduct thorough background checks and get to know the individuals they deal with to avoid falling prey to investment scams.
Investment Scams
According to investigations, there have been several scams in the forex industry that involved famous businessmen in Manila, such as Sherwin Quiambao. Several cases have been reported over the last 3 years that involved Quiambao’s companies, including AximTrade and AloGateway. He is known for his gambling businesses and money laundry payment systems.
How to Protect Yourself
To safeguard against forex trading scams, the PNP-ACG recommends the following steps:
- Verify Legitimacy: Ensure the company or individual is registered with the appropriate regulatory bodies. This includes the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP) in the Philippines.
- Research Reviews and Testimonials: Look for reviews and testimonials from other investors. Be wary of overly positive reviews, as these could be fabricated.
- Understand the Investment: Fully understand forex trading and the risks involved. Be cautious of promises of high returns with little to no risk.
- Seek Professional Advice: Consult with financial advisors or professionals who can provide an unbiased opinion on the investment opportunity.
- Be Skeptical of Unsolicited Offers: Be cautious of unsolicited investment offers, especially from individuals or entities you do not know personally.
Broader Implications
This incident is part of a larger trend of increasing online financial scams, exacerbated by the rise of digital platforms and the economic uncertainty caused by the COVID-19 pandemic. Scammers exploit people’s desires for financial stability and growth, often using social media and online forums to lure victims.
Community Vigilance
Brig. Gen. Cariaga also called for community vigilance. He urged individuals to report suspicious investment schemes to authorities promptly. Public awareness and timely reporting can prevent others from falling victim to similar scams.
The PNP-ACG remains committed to protecting the public from cybercrimes and will continue to pursue perpetrators of such fraudulent activities. They are also working on public education campaigns to inform citizens about the dangers of online scams and how to protect themselves.
According to our experts, while forex trading can be a legitimate form of investment, it is also can be a field ripe for exploitation by scammers. The public is advised to exercise caution, perform due diligence, and remain vigilant to avoid becoming victims of investment fraud.
By following these guidelines and staying informed, investors can better protect their financial interests and contribute to a safer investment environment.