The Securities and Exchange Commission (SEC) is calling on the public to be more vigilant as there has been a rise in reports regarding entities that pose as legitimate and reputable financial institutions scamming people of their hard-earned money.
“The public is advised to protect themselves from obvious investment scams by making sure that he or she has done enough research and has equipped themselves with enough information about the entity and their business,” the Commission said.
It added that, “Always check prior registration with the Securities and Exchange Commission. Remember, a corporation or any business entity must secure prior registration and acquire a secondary license to solicit investments before engaging in any investment-taking activities.”
“The mere fact that an entity has no secondary license granted by the SEC make their investment-taking activities, ILLEGAL,” the commission said.
In addition, the SEC noted that agents and promoters of scams and illegal investment-taking schemes often entice their prospective victims that their business has been running for a long time and has been paying their clients the promised profits.
“Even if an entity appears to be paying their clients the promised profits initially or for quite a time, it does not mean that they can sustain the same,” said the SEC.
It stressed that, “If the entity has no product or service in exchange for the profits that they give to their investors, then that entity…
