Forex most prevalent scam at present: SEC Davao

The Security Exchange Commission (SEC) Davao has warned the public on illegal forex exchange (forex) trading. 

Atty. Katrina Jamilla Estares, regional director of SEC 11, said forex trading, which is not yet regulated in the Philippines, is the most prevalent scam at present.

Forex is the conversion of one currency into another and is considered one of the most actively traded markets in the world.

“Pinaka-uso ngayon ang forex. Yung cryptocurrency na galaw. Sinasabi nila international daw ang humahawak nun. Medyo alanganin kami dun kasi wala siyang tangible na asset na hahawakan yung tao. They have to rely on what platform ang ginagamit. Wala pang regulation diyan kaya wina-warningan namin yung mga tao not to engage to cryptocurrency activities. Hindi mo nakikita kung sino yung may ari, sinasabi nila foreigners,” Estares said.

Estares urged the public to check if certain virtual currency platform if registered with the Bangko Sentral ng Pilipinas (BSP) and SEC to not be duped.

“We have a department that do the monitoring of this kind of activity. Ayaw namin na may mga kababayan tayo na maloloko dahil diyan dahil pag nagka-problema they cannot run after them. May mga red flags yan usually. If it’s too good to be true such as masyadong malaking return. Saan nya kukunin ang pera? Tingnan niya ang value ng product sa value ng return. Kung ang value ng product ay equivalent siya sa sinasabi niyang return,” Estares explained.

SEC has been reminding the public to be aware of various online scams that are now become more common and to take precautionary steps to help distinguish fraudulent schemes from legitimate investments.