3 Tips to avoid financial scam in the Philippines

Financial scam in the Philippines are everywhere at ang masakit na katotohanan maraming mga Filipino ang nahuhulog at nasisilaw sa mga ‘investment‘ daw na magbibigay sa kanila ng malaking tubo or maaaring magpa-doble ng kanilang pera.

This is a very hot issue in these days. Almost every year merong nadidiskubre na malalaking financial scam dito sa Pilipinas.

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If you are looking for the best investment, it is advisable that you study first what you are venturing to. In whatever kind of business, you must take your due diligence para pag-aralan at alamin kung anu nga ba ang papasukin mo.

In fact in the steps of personal finance, investment is at the last stage. You must learn how to budget and build your emergency fund first before venturing to investments.

If you are looking for an investment, please continue reading to check the 3 tips I have to avoid financial scam in the Philippines. Sabi nga ni Sir Aya, “Aral muna bago invest“. We must always keep in our mind that we are the one who is responsible in everything that happens in our life.

If we get scammed before, probably we didn’t study or investigate first before we dive in on that investment. We’re hearing a lot of news about victims of financial scam in the Philippines, and hopefully this article will give some ideas on how to avoid them.

What is financial scam?

Financial scam is something like doing business in illegal or unethical way (this is my personal layman’s term definition). It goes something like this.

At first, the investors (prey or victim) got offered of high returns and interests on the money they will invest, which is just to tease them to dive in. On the initial months or years they are getting what was promised but that’s just part of the game plan.

Once they are ‘hooked‘ with the returns and profit they are getting, they will be asked to put in more and more money promising to get more and more higher returns.

And since greed is part of human emotions, the victim-to-be will more likely to gave in. Especially many Filipinos, since they do not really understand what is happening on the back end (because they didn’t study the business) they will fall into trap.

They will put in more and more of their hard earned money hoping (with confidence) to get more and more returns. Once the predator (the business or business owner) got all the hard-earned money of the prey (the investors), the ‘real game plan‘ will be executed.

And that is to put all those money in their pockets as much as they can. More and more money pour in to the hands of the business scammer until the investors pocket drained out. And then the victims (investors) will realized they had a mistake. A financial scam happened.

Most likely they will became angry to the business and bring a case to the court. But before that happens, the predator/scammer already escaped and enjoying the money of the poor investors.

This is the cycle of financial scam in the Philippines and almost everywhere in the world. Some happens in different scenario but most likely the concept is the same.

We should avoid this. We must be vigilant in taking our responsibility before we dive in to any business or investments.

Tips to avoid financial scam in the Philippines

Tip#1 Know them

If you are getting inquiry or invites about venturing to a business or investments, the first thing you need to do to avoid financial scam in the Philippines or even outside is to know more about them.

Know the person inviting you, the name of the business or investments, their office address, contact number, website, business registration information, the nature of the business or investments, the management (people) behind it and how the business or investment works.

Having the information above will give you more knowledge what you are venturing to. Business registration information (SEC, BIR, DTI etc.) are one of the ingredients of a legal business.

You must know if they are legally allowed to operate as business or offer business and investments. You can visit concerned government office or use the power of internet to research those information.

This is a must and the first step you should take before venturing in any kind of investments.

Tip#2 How much

This is our tip#2 to avoid financial scam in the Philippines. Ask and know how much. How much is the required capital? How much is the return? You must be responsible to know these information.

If they are asking too much investment before you can join or start, know why. Know the reasons why it will costs you that much.

Based from those information, take another time to study from other people or asking the financial experts if that is the real deal about that business or investments.

You must also know how much is the return. As what the experts say, if it’s too good to be true most likely it is a scam.

Don’t fall with the promise of ‘get rich quick scheme‘ or ‘double your money in just a month’ idea. Most likely they are scam. Again if it’s too good to be true, you know what it is.

Tip#3 Ask the expert

One way of getting more information about a business or investment is to ask the experts. If you are being offered by a business or investment, try to get some advise from the expert.

Take those advise from trusted financial or business experts that are really after helping you and not after the fees or commission they will get from you.

There are many financial advocates who are willing to help everyone to avoid financial scam in the Philippines. Paid or free you must seek financial expert advise to help you. You can check with them if they can provide you advise or information about what you are venturing to.

This will give you more information to help you make better decision before you dive in.

After getting as much information as you can from the tips above, you can now decide if that business or investment is for you. You and only you should know what’s best for yourself.

Always use your best judgement in making financial decision that could affect your future.

If you have doubt and not really sure, most likely you’re not ready yet to start a business or investments.

Invest in yourself first to acquire more knowledge and information that could help you make better financial decision and increase chances of success in your life.