Avoid Scam / Red-Flag Investments (Philippines)
Easy, step-by-step guide to help you (and your family) avoid scam or red-flag investment offers in the Philippines, with practical checks and official SEC and BSP links.
What you'll learn in this anti-scam investments guide
This anti-scam / red-flag investments guide shows you how to quickly screen investment offers in the Philippines, check registration with regulators, and spot common red flags before you send any money.
For related financial basics, you may also want to read our Payment Processors Guide and TRAIN Law Compliance Guide.
1. Check registration and legitimacy
In the Philippines, many investment products should be registered with the Securities and Exchange Commission (SEC) or supervised by the Bangko Sentral ng Pilipinas (BSP).
How to check quickly:
- Go to the SEC website and search for the company name: https://www.sec.gov.ph.
- For banks, e-money, or financial products, also check the BSP site: https://www.bsp.gov.ph.
If you cannot find the company or the scheme in any official list, treat it as a big red flag.
2. Analyze the investment offer itself
Be very careful with offers that promise very high returns with almost no risk.
- “Double your money in 30 days”
- “Guaranteed returns, no loss”
- “Income while you sleep with zero risk”
Legitimate investments have moderate, realistic returns and clearly explain both potential gains and risks.
3. Research the company and promoters
Spend a few minutes checking background:
- Search the company name + “scam” or “review” on Google.
- Look on social media for complaints, warning posts, or news articles.
- Ask for a physical office address, official email, and copies of licenses or registrations.
If they avoid giving clear details, treat that as a warning sign.
4. Avoid pressure tactics
Scammers often push you to decide immediately using lines like:
- “Limited slots only, decide now.”
- “Promo until today lang.”
- “This is exclusive, don’t tell others.”
A legitimate investment lets you think, ask questions, and read documents before you put in money.
5. Verify payment methods
Be very cautious if you are asked to send money to a personal bank account or a random crypto wallet of someone you do not know.
Legitimate companies typically use accounts under the registered business name or reputable, regulated payment platforms.
6. Read all terms & contracts carefully
Do not sign or agree to anything you have not fully read. Watch for:
- Hidden fees and vague conditions.
- Referral or recruitment requirements that look like pyramid or MLM schemes.
- Clauses that say the company is “not responsible” for losses but still promises huge returns.
7. Trust your gut
If an offer feels too good to be true, it probably is. If something feels off or confusing, pause and walk away instead of rushing a decision.
Good investments are usually transparent and will patiently answer your questions with clear documentation.
8. Report suspicious offers
If you suspect a scam, you can report it to:
- SEC Consumer Protection: https://www.sec.gov.ph/consumers-protection/
- BSP Consumer Protection: https://www.bsp.gov.ph/ConsumerProtection/
Warn your family and friends to help prevent others from becoming victims.
Extra tip: prefer regulated, well-known providers
As much as possible, stick to well-known banks, licensed brokerage firms, or SEC/BSP-regulated financial companies. Be very cautious with schemes promoted mainly via social media or group chats, especially if you cannot verify registration.