The Securities and Exchange Commission (SEC) has warned the public against financial scams and illegal activities targeting financial accounts and relevant information.
The agency's warning on Monday came amid the rise of scams through various schemes in exchange for money and financial information.
Sharing, lending, renting, or allowing others to use one’s bank account or e-wallet may turn an individual into a money mule for scams and other illegal activities, such as Ponzi schemes and money laundering, the SEC said.
Another involves the advance fee loan scam, in which a person or group claims to represent lending or financing companies registered with the SEC and later scams individuals by requiring them to pay a certain amount in exchange for the release of the loan.
“Victims are drawn into paying the amount asked as they promised that the advance payment will be returned as part of the loaned amount. However, upon payment, the loan will not be released, and more reasons will be given to the victim to get more funds in exchange for the amount loaned,” the agency stressed.
The SEC also warned the public against engaging with unregistered entities and platforms that offer crypto-asset services to ensure the safety of investors.
The agency has cancelled the registration of 401 lending companies tagged as delinquent for failure to submit their requirements.
Illegal schemes violate Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act, which carries a penalty of up to 14 years imprisonment and a P5 million fine.