BDO Foundation and the SEC: Helping Filipinos spot investment scams

WHEN an investment opportunity sounds too good to be true, it’s probably a scam. Unfortunately, it can be difficult to identify legitimate opportunities versus bogus ones as scams become more and more sophisticated each day.

This is a challenge the Securities and Exchange Commission (SEC) and BDO Foundation are trying to address through a partnership project.

The two organizations recently released two entertaining and educational investor protection videos titled “Check with SEC” and “Legit Investments? It’s a Date.” The short videos reveal potential investment red flags, teach viewers what questions to ask and how to verify existing business information, and encourage the public to check with the proper authorities like the SEC when choosing the right investment.

“Doble o higit pa buwan-buwan na kita... Malamang scam ‘yan!”

There are many ways to spot investment red flags. One is to ask the right questions and listen to and study the answers. The music video “Check with SEC” listed examples: promising an easy “double your investment” (or more) monthly income, requiring one to recruit other investors for bonuses, and the need to deposit investment in the agent’s personal bank account to facilitate the process, among many others.

These are only some of the common methods that scammers use to lure potential investors to shell out their hard-earned money. Oftentimes, the offers promise high-yielding returns that entice unsuspecting individuals to invest.

Registered to sell securities?

The video “Legit Investments? It’s a Date” tells the story of Aldea as she investigates three potential investment opportunities. She finds her match by fully understanding her role as an investor, learning more about the business, and asking for the right documents.

One of the many lessons viewers can learn from the video is that being SEC-registered does not automatically mean that a business is licensed to offer investment products. Some of the required documents to look for are permit to sell or offer securities, order of registration, and prospectus and salesman certificate.

The videos are now accessible on the Facebook page of the SEC and soon on other platforms of SEC and its partners, as well as on the BDO Foundation YouTube playlist. These will also be used in training seminars and on-ground campaigns.

“BDO Foundation, being a staunch advocate of financial education, also believes in the importance of investor protection. This shared project not only helps prevent Filipinos from falling victim to investment scams but also builds and restores confidence in legitimate investment opportunities,” shared BDO Foundation president Mario Deriquito.