Fact Check: The Truth Behind Those Viral Bitcoin Ads
The allure of fast and easy money has been the most common method that scammers use to bait unsuspecting investors into their modus.
As the world grapples with the socioeconomic impacts of COVID-19, many have also struggled under the financial burdens brought about by the pandemic. There will always be fraudsters devising underhanded methods to trick unsuspecting people out of their hard-earned cash. The allure of fast and easy money has been the most common method that scammers use to bait unsuspecting investors into their modus.
A scammer’s new modus
In the Digital Age, various ads and articles promise to double people’s money quickly using a so-called ‘business opportunity.’
One example is a fake article from the website nitify.com titled “SPECIAL REPORT: Carlos Dominguez's Latest Investment Has Experts in Awe And Big Banks Terrified.” The article had no publication date but alleged that Department of Finance (DOF) Secretary Carlos ‘Sonny’ Dominguez III endorsed the “Bitcoin Revolution” when he appeared on the noontime television show Eat Bulaga! as a guest after being invited by host Vic Sotto. During the show, Dominguez supposedly announced a new “wealth loophole” that can transform anyone into a millionaire in a short span of three to four months. The website also dishonestly included fake screenshots of what looked like Dominguez’s money transfers using the platform. It also falsely claimed that this information appeared on other legitimate newspapers by using logos of the Philippine Star, Manila Times, Daily Tribune, and Manila Bulletin.
Another article that appeared on the moneytechdeal.com website claims that Filipino broadcast journalist Jessica Soho “appeared on the Filipino TV Patrol news show” to talk about a new cryptocurrency auto-trading program called “Bitcoin Manila that can transform anyone into a millionaire within 3-4 months. With the false but catchy title “SPECIAL REPORT: Jessica Soho’s Latest Investment Has Experts in Awe And Big Banks Terrified,” the write up alleges that Bitcoin Manila is “backed by some of the smartest tech minds to ever exist,” naming top personalities such as Richard Branson, Elon Musk and Bill Gates. The article also makes big claims that “Bitcoin Manila lets you profit from all of these cryptocurrencies, even in a bear market. It uses artificial intelligence (AI) to automatically handle long and short selling for you so you can make money around the clock, even while you sleep.”
Both are examples of fake ads using the names of prominent individuals like public officials and media celebrities. The DOF has repeatedly warned the public about investment scams using tactics like these.
“We warn those behind these unscrupulous and unauthorized investment schemes that the government is monitoring the public space for such schemes and will take appropriate legal and regulatory action,” the DOF said in a statement.
SEC issues Anti-Scam checklist
To better inform the public against these malicious practices, the Securities and Exchange Commission (SEC) has issued a detailed Investment Scam Checklist on its website https://www.sec.gov.ph/investors-education-and-information/investment-scam-checklist/.
The checklist contains many useful tips that encourage the public to examine and study any investment offer advertised in various mediums – phone, e-mail, online or social media. Before making any moves, the public must get the following info:
- Name of the person and company making the offer
- Address of both the person and company
- Landline number that can be traced back to the owner
- SEC Registration as an investment taker. Only investment houses and financing companies with quasi-banking license and with SEC-registered securities may offer investments, and only SEC-registered persons may offer or sell SEC-registered securities to the public
Likewise, the SEC warns the public not to deal with persons or companies if they:
- Are unwilling or hesitant to give any information
- Have no SEC registration or appropriate license to engage in securities/investments
- Claim to have a quasi-banking license or SEC-registered securities. Ask them to provide information such as the number of investors, minimum placement, return rate, etc. You can also verify the company’s name from the list of companies legally allowed to offer investments on the SEC website.
- Fail to give information or is not listed on the SEC website.
Where to invest
The Premyo Bonds sold by the Bureau of the Treasury (BTr) for a minimum of P500 pays an annual interest rate of 1.25 percent, subject to a 20 percent withholding tax. For every P500 of investment, you will be granted a raffle entry for a quarterly draw wherein you can win thousands up to a million pesos.
The MP2 Savings program of Pag-IBIG Fund, a special voluntary savings facility for members, pays an average of seven percent annually for a holding period of five years.
The government is also pursuing reforms to make investing in legitimate opportunities easier and simpler. The Duterte administration's proposed Passive Income and Financial Intermediaries Taxation Act (PIFITA) will reduce confusion regarding taxes on bonds and stocks by drastically lowering the number of tax rates on financial transactions from 80 to 36. Once enacted, PIFITA will make it easier for everyday Filipino investors to put their money in safe and secure investment opportunities.
To learn more about how to invest safely, you may check out the investor’s education and information website of the Securities and Exchange Commission (SEC).
Where to report
When in doubt, inquire from the SEC Corporate Governance and Finance Department thru (02) 8584-6103 or the Markets and Securities Regulation Department at (02) 8584-5703. For complaints and reports, the public may contact the SEC Enforcement and Investor Protection Department through landline at (02) 8818-6337 or e-mail at [email protected].
For emergencies, it’s best to seek NBI and police assistance. For malicious messages, lodge reports to the NBI Anti-Fraud Division at (02) 8525-4093 or e-mail at [email protected]. You may also send a message through the NBI’s website at www.nbi.gov.ph or their official Facebook account. You may also report these incidents to the PNP Anti-Crime Group (PNP-ACG) through www.pnpacg.ph or hotline number at (02) 8723-0401 local 5313.
In today’s challenging times, both the government and private sector are working together to help the public safeguard their hard-earned money, for the people’s financial welfare is closely tied to economic growth and stability.
