SEC Alerts on Unregistered Lending Scams, Fake PIFA
Disclaimer: This article is for informational purposes only and does not constitute financial advice. BitPinas has no commercial relationship with any mentioned entity unless otherwise stated.
📬 Get the biggest crypto stories in the Philippines and Southeast Asia every week — subscribe to the BitPinas Newsletter.
The Securities and Exchange Commision (SEC) warned the public against fraudulent entities, including a fake Facebook account posing as the legitimate Philippine Investment Funds Association (PIFA) and the unregistered CT Loan Cash Loan and Credit Company.
What’s the significance: The advisory protects the public from being scammed by fraudulent investment schemes and unauthorized lending platforms, potentially saving people from financial loss.
Key details:
- The SEC advised against investing in a fake PIFA Facebook account that promises unrealistic profits and offers referral bonuses.
- The fake account is not affiliated with the legitimate PIFA, which is a registered organization with the SEC.
- CT Loan Cash Loan and Credit Company, posing as a lending company using the “CT Link” webpage, is also not registered with the SEC and is operating illegally.
- An app called “CT Loan and Cash Loan Credit” was removed from the Apple App Store on May 1, 2024, due to complaints about abusive collection practices.
- The CT Link webpage falsely claimed association with a legitimate company, CT Link Systems, which is not involved in any lending activities.
- CT Link Systems, Inc. (CTLSI) reported receiving complaints about the fake company’s activities.
The numbers: The fake PIFA account is enticing people to invest P1,000 to P50,000, promising 250% to 340% profit in four days and offering a 15% referral bonus.
The Department of Justice (DOJ) also warned against engaging with unregistered online lending companies and advises caution.
What to watch: Keep an eye on further SEC advisories and actions against fraudulent schemes as online financial scams continue to evolve.
The bottom line: Investors must be wary of unregistered investment and lending schemes, and verify the legitimacy of any financial entity before investing.
Worth reading: Last month, the SEC warned the public about fraudulent cryptocurrency schemes Coinmate Plus and Trade 13.0 SERAX, both operating without proper registration and potentially engaging in Ponzi-like activities.
This article is published on BitPinas: SEC Alerts on Unregistered Lending Scams, Fake PIFA
What else is happening in Crypto Philippines and beyond?
