The Philippine Stock Exchange (PSE) recently issued a warning about a crypto investment scam that is using the PSE’s logo and name to lure unsuspecting investors. The fraudulent scheme involved a fake firm that advertised investing in the PSE through a legitimate-looking website. Investors were contacted through messaging apps and shown fake investment gains, prompting them to increase their investments through e-wallets. The scammers then sent messages claiming that investors entered the wrong order, leading to the loss of their withdrawal passwords. To resolve the issue, the scammers advised investors to create new accounts, make new deposits, and complete new tasks.
The scammers and investors had a Telegram group for communication about investments. When investors complained about their inaccessible accounts, other “members” in the group pretended to be experiencing the same issue but were actually accomplices to the scammers, showing that they were able to withdraw funds. The PSE clarified that they do not own or operate the fake website, do not sell cryptocurrencies, do not have a customer service team, and do not promote cryptocurrency investments. The warning from the PSE comes amidst a rise in crypto scams in the Philippines, with various regulatory bodies issuing advisories to protect investors from falling victim to fraudulent schemes.
In July, the Central Bank of the Philippines (BSP) issued a warning about scams involving AI-manipulated videos and audio promoting cryptocurrency investments. The BSP advised the public to verify the authenticity of social media posts and report any suspicious activities. In June, the Philippines Securities and Exchange Commission (SEC) warned against investing in Skyline Crypto and Dry Goods Trading, labeling them as potential Ponzi schemes. The SEC’s advisory aimed to protect investors from falling prey to fraudulent entities promising high returns on investments.
Crypto scams have been a growing concern in the Philippines, causing financial harm to unsuspecting investors. Last year, the Philippines SEC collaborated with its US counterpart to address the increasing issue of crypto scams. The partnership highlighted the seriousness of crypto-related fraud and aimed to enhance regulatory efforts to protect investors from falling victim to fraudulent schemes. With the rise of digital assets and the growing popularity of cryptocurrency investments, it is essential for investors to exercise caution, conduct thorough due diligence, and verify the legitimacy of investment opportunities before committing their funds. By staying vigilant and informed, investors can protect themselves from falling victim to crypto investment scams.
