SEC warns public vs ‘money mule’ scams
The Securities and Exchange Commission (SEC) has warned the public against possible criminal syndicates posing as representatives of registered lending firms to dupe people into providing their bank account details and facilitate financial scams.
In separate advisories earlier this month, the commission said these groups were involved in a so-called advance fee loan scam, in which victims are asked to pay a certain amount before getting their requested loan.
However, scammers will not release the loan even after victims have paid the fee, “and more reasons will be given to the victim to get more funds in exchange for the release of the amount loaned.”
“Claims that advance payment is required by the SEC prior to the release of a loan are false and contrary to law,” the SEC said in its advisory. “The public is advised not to believe these scammers as the commission will not require the public to make an advance payment as a condition for the release of a loan.”
The public was likewise reminded not to become “money mules,” or those allowing access to their bank, e-wallet or online financial accounts to other people to facilitate scams.
Ponzi schemes
Under Republic Act No. 12010, or the Anti-Financial Account Scamming Act, those found guilty of acting as money mules may face civil and criminal charges, including imprisonment of up to 14 years and a fine of up to P5 million.
Apart from advance fee loan scams, the criminal syndicates may also perpetrate Ponzi schemes, money laundering and other illegal investment-taking activities, according to the SEC.
The regulator has recently been canceling the corporate papers of companies found to have been illegally soliciting investments from the public.
Cyfle OPC was among the latest to have its corporate registration revoked for allegedly requiring a P50,000 minimum investment with a promise of a 30-percent return.
The SEC noted that Cyfle was not authorized to do this under its articles of incorporation.
