SEC cautions public vs. financial scams, illegal activities

TARLAC CITY — The Securities and Exchange Commission-Tarlac Extension Office (SEC-TAREO) reminded the public to remain vigilant in handling their financial accounts to avoid falling victim to scams.
During the Kapihan sa SEC, the commission raised concern over the rise of scams and illegal activities that target the public through various schemes in exchange for money and financial information.
SEC-TAREO Director Richard Laus stated that sharing, lending, renting, or allowing others to use one’s bank account or e-wallet may turn an individual into a money mule for scams and other illegal activities, such as Ponzi schemes and money laundering.
He also highlighted the advance fee loan scam, in which a person or group claims to represent lending or financing companies registered with the SEC and later scams individuals by requiring them to pay a certain amount in exchange for the release of the loan.
“Victims are drawn into paying the amount asked as they promised that the advance payment will be returned as part of the loaned amount. However, upon payment, loan will not be released, and more reasons will be given to the victim to get more funds in exchange of the amount loaned,” Laus explained.
In addition, SEC-TAREO warned the public against engaging with unregistered entities and platforms that offer crypto-asset services to ensure the safety of investors.
To further protect the public, the commission has cancelled the registration of 401 lending companies tagged as delinquent for failure to submit their requirements.
SEC-TAREO stressed that such illegal schemes violate Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act, which carries a penalty of up to 14 years imprisonment and a P5 million fine. (PIA R 3-Tarlac)