SEC-Davao monitoring 4 entities allegedly involved in cryptocurrency scams

DAVAO CITY (MindaNews / 21 June) —- The Securities and Exchange Commission Davao (SEC-Davao) is monitoring four Davao-based entities allegedly engaged in cryptocurrency scams. 

SEC-Davao director Katrina Jamilla Ponco-Estares told the Business Forum at NCCC on last Friday that most of the cryptocurrency scams they monitored are “difficult to pinpoint” due to lack of evidence and the alleged scammers are using social media and online platforms.

Estares said these alleged scams that they are investigating are mostly not SEC-registered and only exist online. “If it is registered, when they submit it to us, they won’t say what their purpose is.” she added.

She added these alleged illegal cryptocurrency operations, alongside other online scams, often have no physical office and rely solely on digital platforms such as GCash or PayMaya for transactions.

Some originate from other parts of the Philippines or even overseas, but with clients from Davao Region, which could further complicate their means of hunting them down.

Their lack of physical presence makes it challenging for regulators to monitor and act against them, Estares added.

Aside from cryptocurrency scams, SEC-Davao’s other growing concern involves online lending apps.

From January to June this year, SEC-Davao has received 11 complaints about investment scams in the Davao Region, and 77 complaints against lending and financing scams. 

Estares said they immediately investigate whenever someone files a complaint, but sometimes there’s not enough information because the complainant is no longer available so they forward the case to SEC headquarters for further monitoring.

To protect more people from falling victim to these scams, Estares said the SEC has put preventive measures in place and continues to remind the public not to trust online investment offers.

Estares noted that although some online lending are legitimate, many are short-lived operations that exploit users. A common tactic used in these scams is the “advance fee loan” scheme, where social media ads entice users to apply for loans.

Applicants are then asked to pay upfront fees, like registration or processing charges before receiving any funds.

“More on online ang mga scams ngayon. At mostly hindi registered sa SEC at mostly sa online lang. Meron kaming makikita online na invitation to the public to invest,” Estares said.

SEC-Davao, she said, is working with local government units (LGUs) in the Davao Region and the police through Anti-Scam Units to strengthen monitoring and prevention efforts.

“It might be the prerogatives of the LGU, but we welcome LGUs who would adopt (anti-scam units in their police stations),” Estares said in Filipino. (Ian Carl Espinosa/MindaNews)