SEC Davao warns on ‘Advance Fee Loan’ scam

(From: Securities and Exchange Commission)
(From: Securities and Exchange Commission)

The Securities and Exchange Commission-Davao Extension Office (SEC- Davao) is warning the public as reports of the advance fee loan scam continue to increase. 

This fraudulent scheme, perpetrated by individuals or groups impersonating as representatives of legitimate financing or lending companies, are now resorting to a more elaborate scheme. 

“Years ago, the scheme employed was to collect an advance fee before purportedly releasing the loan amount. These days, victims are led to believe that they have been approved for a loan and are provided with false evidence of a bank deposit purportedly representing the loan amount. Victims are then informed that the deposit was sent to a wrong account number and are pressured into transferring an amount of money to rectify the supposed error so as to release the funds to their accounts,” said SEC DAVEO Director Atty. Katrina Ponco-Estares.

It can be recalled that the Commission has issued advisories on advance fee scams on November 29, 2022, October 18, 2023, and most recently on January 26 this year.

“The SEC Davao Extension Office is calling on the public to exercise vigilance in dealing with financial transactions. Legitimate lending corporations do not require customers initial payments or fees to cover erroneous transactions. We urge the victims to promptly report these scams to the appropriate authorities, including the Philippine National Police (PNP) and the National Bureau of Investigation (NBI),” Estares added.

Perpetrators of advance fee loan scams are in violation of Article 315 Swindling (estafa) of the Revised Penal Code (RPC) of the Philippines. 

The SEC DAVEO remains committed to protecting the public against advance fee loan scams and will continue to collaborate with the proper law enforcement agencies to combat these illegal activities.

To report suspected advance fee loan scams, please contact the SEC DAVEO at 0933-455-3547 or email at PR


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