(Scam artists can make frogs look like princes in 10 seconds, so just walk away. Photo from AFP)
It's true. I’ve been scammed several times. Don’t laugh at me, okay? This is a public confession of my extreme stupid moments!
When I was a college student, I gave the gold necklace I was wearing to an old lady I met at the Shopping Center in the University of the Philippines who said she would only “borrow” it so that she could pay someone to open her car door. For some reason, she was locked out and could not go home. Duh moment! She spoke in even tones and was very persuasive, but let me tell you it was my stupidity that got the better of me. She looked pretty decent, too.
That was a pretty simple scam, but con artists can get creative in their efforts. Another fraudster was a contractor for a big telecommunications company who installed our DSL modem. He seemed like a harmless guy and I didn’t think there was anything wrong in telling him about my line of work as well as my husband’s. Besides, he was in my home on official business. Unfortunately, he was part of
a gang that preys on househelp. He or a member of his group pretended to be my husband, gave a story about being in a car accident and instructed the househelp to bring cash and valuables to a shady place in Caloocan, a city just 30-minutes away from us.
A few days before they made the move, I remember receiving a call from Equitable PCI bank (allegedly) asking to talk to my husband to “update their bank records.” That should have been a warning sign. Banks DO NOT call clients to update records. They just pop letters in the mail to do that. On hindsight, I realize that they were trying to figure out which one in their group could pass off as my husband on the phone.
These con artists also prey on greed. Read one of the most-visited post on this blog about
Francswiss and scroll down to the comments section if you want to be blown away by the
greed factor.
Scams are everywhere. On the Internet, they have become extremely virulent. They start with simple emails on winning a lottery, a chance to win free money from big companies (usually Microsoft or Yahoo). They make people say “What’s the harm in that?” and “What if it were true?” But these emails harvest your addresses and put you on crooks’ lists of “people to dupe.”
There’s only one thing to do about these things:
walk away. Forget the free money; forget the high interest.
More tips on our personal finance article “How to smell a scam.”
Here are some warning signs:
- The investment plan offers or guarantees an interest rate that is much higher than prevailing market rates. In fact, these rates may be too good to be true. Beware of promises such as “50 percent return in 90 days,” or “double your money in 1 year.” These are unbelievable rates of return which the legitimate investment market will not be able to give. Before signing up for an investment plan, study the prevailing market rates. Long term time deposit rates can go up as high as 6 percent per annum. Research on the Internet and go to legitimate websites of Philippine banks and financial companies and see how their mutual funds and unit investment trust funds are performing to give you an idea of the yearly average rate of returns. These may run up to only 20 percent per annum. Clearly then, a 100 percent return on your investment is very fishy.
- The company does not take time to explain the concept of the investment thoroughly and pressures you into making a decision. They may give you testimonials of “satisfied” investors and just make a quick run down on the kinds of investments they will handle for you. Or they present you with awesome presentations of high risk investments you are not thoroughly familiar with, such as accounts receivable factoring, dollar hedging, commodities trading, etc., capitalizing on people’s unfamiliarity with such forms of investments and promising high returns.Before you get into any investment, you should be given all the details of the offer or plan. You should also be given as much time as you need to study your options. Don’t ever be bullied into making an investment decision.
- The company has no track record. When you get an investment proposal from a company you have never heard of, be extra cautious. Find out all that you can about the company: who started it, when was it incorporated, and what is the track record of the company so far. Some scammers may brag that they are a new offshore branch of a company based abroad that is why they have never been heard of. That’s even more reason to be cautious.You can get information from the Securities and Exchange Commission, and from knowledgeable people among your network. When in doubt, do not transact business with that company. Instead, deal only with banks and established financial investment companies.
- The company does not have a physical office address. If the company is legitimate and will handle investments from many people, they have to have a reputable office address, one that you can go into at any time of the day, or call by phone anytime during office hours. Take note though that there have been some companies with physical addresses that still turned out to be swindlers so be careful.When you do finally invest, you have difficulty getting your money after some time. The returns may be very attractive at first, but in the long run, their checks may start bouncing, or you may be given promissory notes for the returns promised to you. Or they suddenly impose strict procedures, such as not allowing withdrawal for a very long period of time contrary to what was explained to you at first. When any of these happen, contact the Securities and Exchange Commission right away.
dugo-dugo gang?
i conduct security awareness trainings internally in my company and sometimes outside that includes fraud prevention.
I always tell them: if it's too good to be true, it probably isn't true...
walk away, walk away :P
If people will only use their common sense and forget about greed, there will be a lot less scammers and con artists.
Unfortunately, common sense is not very common!
rosalee, hahaha. common sense is not very common indeed.
Here's a new scam I found out recently. I was on holiday in Manila during the Holy Week and I got a call from a friend of mine who was very excited to tell me that she got a reply to her application for a Production Engineer position for Total Petroleum (Nigeria), with a firm job offer at a monthly salary of $25,000, plus expatriate benefits, together with instructions on how to submit documents and apply for Nigeria work permit. I asked her whether she was ever interviewed..."Oh, ah, eh ...no, they never interviewed me" was her reply. I told her to Google the company, and it turned out that it is an ongoing scam. The way they make money is that when you "apply for the work permit" with the "Ministry of employment" with an email address at Gmail!!!, they will soon ask the applicant to pay the application fees of $1,500, which the "company" have committed to reimburse anyway and quite low compared to the "monthly salary" so the candidate will be tempted to pay up.
Watch out for this scam, guys. As Paetechie has mentioned above, if it's too good to be true, it probably isn't true.
http://www.fraudwatchers.org/
if you further reading on different frauds, you may visit the above link.
I just wish some form of institution would initiate public education for these types of scams. (I might be wrong, there might be someone else doing this already). Other than the lotto, I believe Scams are the next thing that Pinoys believe they will get rich.. quick!
Cesar, thanks for the tip! Recruitment scams is a whole industry. I hope the authorities know about this already. I hope its okay with you if I forward your tip to OWWA. Take care.
Ron, thanks for sharing the link.
Silvertooth, I think the DTI, SEC and BSP all have investor awareness programs in one form or the other. There are also other private websites like Ron's link above, Snopes.com, Scambusters.org etc. who hope to educate the public about scams. However, I think the more the better. Because at the end of the day, some people just don't want to listen so we need more voices raising awareness.
This is the biggest SCAM IN GOVERNMENT. Only in the Philippines! people who is speaking against the FAKE PRESIDENT GLORIA ARROYO, Getting rotten in jail, Missing, If not are getting kill. But the people who is stealing the taxespayer's money like Gloria Arroyo, Et al. Are free to do whatever they want to do, Because she control the entire corrupt justices system.
.................................
Former Military Comptroller Acquitted of Perjury for the Second Time
The Sandiganbayan Second Divison on Thursday, April 10, acquitted retired Major General Carlos Garcia, former Armed Forces of the Philippines comptroller, of the crime of perjury.
Garcia, a former military comptroller alleged to have amassed P303 million in unexplained wealth, was earlier convicted by a court martial in December 2006 and sentenced to imprisonment, hard labor, and forfeiture of his retirement benefits. A guilty decision on the perjury cases would have bolstered plunder charges filed against Garcia by government prosecutors following discovery of his alleged ill-gotten wealth.
The perjury case at the second division of the Sandiganbayan
I often bumped into con artists. I tipped off Dr. Noet about Francswiss before it hit the news. I learned about it from a friend who was inviting me to invest. I told her it’s a scam and get your money out before you lose it! I met the perpetrators. I pretended to be interested but I was just gathering info to report to the authorities. Ala undercover agent :-)
Believe it or not, an insurance firm even asked me to participate in an entrapment operation after I reported to them an insurance fraud that was using their company’s name. Alas, the con artist did not show up. I think a company insider was part of the scam and tipped off the guy.
I know the scammers who are still operating. Their front are legitimate businesses like franchising, MLM, distributorship. I can’t name names because they have not (yet) violated any law until they run away with investors’ money. So beware!
ay nabiktima ka ng budol-budol gang. just like may bf's mom. just recently. same thing like yours, she gave all her jewelry and money! dalawang babae ang bumiktima s kanya.. hay naku.. para s pera lahat gagawin..
Interesting points you have here. I wonder when will these scam businesses end? Until no one get scammed, I guess.
Pinoy Investor, you finally came out and said it yey! You did a good thing there. Your tip actually brought them down, you know. The AMLC couldn't have done it on their own, without the media's help. And you were the one that made that happen. Thanks!
Nelli, unfortunately I was. They are still alive and kicking so guys beware! Warning househelp won't work. You have to give them surprise drills now and then.
Make Money Online, I don't think scams will stop. In fact, they will grow in the coming years and grow more sophisticated too. Just last night, someone close to me says the scams that are more harmful are the ones that happen right under your noses. I think this is most common among business owners. Fraud is not a good problem to have.
salve,
Thanks. Right now I’m looking into a possible scam. This could be the biggest scam ever! Over P100 B! I can’t say it in public because I don’t have evidence. I can tell you in private then do your own research. You want?
Pinoy Investor, of course! Can't wait to get your email :)
hi salve and pinoy investor,
my husband runs a small business selling vegetarian goods. he got a call out of the blue the other day from a lady claiming to represent buyers for vegetarian goods and claiming to require 500 kilos a week. that seems much too good to be true. is it possible for a supplier to get scammed? can i send you the details by email?
thanks :)
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This is such of an amazing story that you went through. The story with the elderly lady and the gold chain is so good. I would have done the same thing. Keep up the good stories.
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After reading about the contractor from the telecommunications company who installed your DSL modem, I'm thinking about all those guys who come to my place for business purpose, not forgetting even my cable guy. It was smart of you to make out about the update inquiry from that fraud guy, if I was in your place I'd have already been trapped. I've learned that we should be very careful about who is asking our details and actually details through the phone is a complete No. There are too many scams and these people do their homework well so, I'm going to be more careful than ever.
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Absolutely right! I have experienced it. First they say very sweet and profitable options of making money.. But after some months they even forget us..
Investor must be careful before investing your money in any company. You must check all records of that company.payday loan lenders
These warning signs are really interesting.
If we pay attentions nd remember these warning signs we can easily avoid the scams.
Its really helpful for the people who are investing first time in a company.
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Bringing up this topic was important. Personally I keep on receiving scams from people who say they have money to invest in my country and want me to be their agent.
The second scam I witnessed was very funny. It was about a company that made financial transactions with an agent of a telecommunication company not knowing he had been fired some weeks ago.
Also a company I know was almost about to sign a contract with a man who was proposing to them a fake amortization table.
I still remember a bank that came up with a savings plan for which the money will be doubled in half a year. This bank after so many people had entrusted them their money disappeared leaving many people poor.
But now a days what has come up is whites ladies in the western world being scammed by black guys in Africa.
I hope people will be more vigilant and have the spirit of discernment.