Malacañang on Sunday cautioned the public against the proliferation of online investment scams that promise huge and quick returns for hard-earned money, saying such assurance is most likely fake.
In an interview over state-run Radyo ng Bayan, Presidential Communications Secretary Herminio Coloma Jr. said the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC) and other government agencies are on their toes to immediately identify and punish those who are behind such scams.
“We call on our people to be vigilant and to scrutinize thoroughly investment proposals that promise very high profits because these are most probably deceitful and exploitative,” Coloma added.
He cited a recent DTI report that people behind these investment schemes target people from the regions who are active on social media.
“The DTI through the Consumers’ Protection and Advocacy Bureau and the [SEC] through their Enforcement and Investor Protection Department have heightened their campaign to warn the public to avoid falling prey to these pyramid scam, Ponzi scam and others,” Coloma said.
According to the Palace official, there is a marked increase in the number of victims through the Internet because many people are into online shopping.
“DTI and SEC have issued a warning and advisory against such scams. The two agencies are with the Department of Justice [DOJ] and National Bureau of Investigation, and even the Philippine National Police in the campaign. In fact, the DOJ has filed charges against some of those involved based on gathered evidence,” Coloma said.
Meanwhile, one of the subject firms of a government advisory denied that it is involved in such anomaly.
Officials of Success International Marketing Corp., or Success200, faced the media recently to dispel the bad publicity the advisory has cast on their company.
“The company is engaged in the marketing and distribution of different value products. It is not engaged in the sale of securities or any form of investments. In the marketing and distribution of these products, the company has adopted a powerful marketing strategy used in the Multi-Level Industry commonly known as a Split Matrix System,” the company said in a statement.
“This marketing strategy is an innovation in the way a product can be sold and distributed in the market,at the same time creating channels for consumers to earn additional income–just by promoting the product. This system has been used in the… industry for more than a decade without any problem whatsoever as far as product distribution and commission payouts are concern[ed]. It is a stable and a proven compensation and marketing plan,” it added.
In a news conference held in Quezon City, Success200 founders argued that contrary to the SEC advisory released last July 20, 2015 indicating that their members are being advised to refrain from further investing in the company, their company is engaged in “promoting and selling products,” not in accepting investments.