SEC7 spreads investment

fraud info-drive in Bohol

TAGBILARAN CITY, Bohol, (PIA)—Investment scammers are now shying away from using the word investments in their sales spiels, but if in essence, they are selling the same, they are still scammers.

This came out during the Kapihan sa PIA when the Securities and Exchange Commission (SEC) through its information Officer Dion Drew Diano campaigned against investment frauds that has since victimized innocent investors in the Visayas.

Diano said that SEC is regularly updating its posted advisories against specific fraud companies and as soon as the commission discovers a new fraud modus operandi when scammers amend their modus to escape detection, SEC has to update its advisories too.

Among such advisories against frauds is a new modus is using deep-fake.

Deepfakes are hyper-realistic forgeries made out of synthetic media—realistic but fabricated videos, images, or audio—created content using artificial intelligence (AI) making it seem as though someone said or did something they didn't.

Now used by fraudsters as a source for misinformation by market deception, political manipulation, fraud, and non-consensual explicit content.

Using popular and famous business personalities, scammers produce videos and there are people who believe in it that they fall victims, Diano continued.

Do not transact with specific companies because they are either, not SEC registered or they do not have licenses.

Most of the victims believed because they thought it was legitimate, because the fraudsters claimed they are SEC-registered, so we have to clarify: SEC registration is not a license so they can solicit and seek investments. They have to get a secondary license, the petite information officer emphasized.

Only if they have this secondary license, then they can sell securities and investments, she continued.

She said companies must also register their instruments and securities or stocks with SEC, before they can engage in any business.

Aside from registering and supervising corporations and partnerships, SEC is also responsible for ensuring their compliance with laws such as the Corporation Code and the Foreign Investments Act, and the commission is also tasked to protect investors by monitoring market activities and ensuring compliance with pertinent laws, rules, and policies.

Another thing to remember is that companies are not just the ones needing registration: the company has to register its instruments (stocks to offer) or its securities, to get a license to engage in business and third, all its sales personnel have to get their individual licenses, she pressed.

And while SEC has its advisories against these companies that operate soliciting investments that can be seen in their SEC website advisories, the commission is also asking people who may have encountered these investment frauds to help them by reporting to the website.

We have consistently continued with our investigations, the release of advisories and proactive pursuit of these entities, and if we see them, we take the initiative to participate in the investigations and file complaints, she advanced the information for these scammers, as only the SEC can file complaints against violations on the securities regulation code, she added. (PIABohol)

WATCH THAT FRAUD. SEC Information Officer Dion Drew Diano warned Boholano listeners about new investment scam modus like deep fakes, soliciting investments without SEC licenses for their securities and unlicensed sales personnel. (PIAbohol)