How to spot an Investment SCAM?

There are a lot of Financial Scams in the Philippines. Sadly, many Filipinos gets victimized.

Reason? Lack of financial knowledge and most wants Instant Money.

Who will forget Multitel (Multinational Telecom Investors Corp.)? Rose Baladjay started it, and it was probably the biggest scam in Philippine history.

Approximately two million people invested in this company—which probably reached P100 billion.

Multitel was so believable that they lured many military people and police officers to invest their hard earned money in the scam.

Multitel promised 4 percent to 5 percent interest a month or 60 percent growth a year! They also offered to double your money in 18 months.

This is why when you hear the word pyramid, the first thing that comes to your mind is SCAM. Agree?

This pyramiding scam, also known as a Ponzi Scheme, named after Charles Ponzi, in the early 1900’s scammed investors $10 million by promising them 40% returns.

The company gets money from new clients to pay off the interest of old clients.  For the paid members everything goes fine and that leads to excellent recommendations until they run out of new recruits and the scheme eventually collapse. The only people who consistently get paid are the older clients.

2 years ago another Scam duped some 15,000 people in Mindanao and the Visayas of P12 billion by who? Aman Futures

How to spot an Investment SCAM?


How to spot an Investment SCAM?

1. Very High Interest Rates

Multitel promised 4% to 5% percent interest a month or 60% growth a year. It’s too good to be true.

2.Guaranteed High Interest Rates Every Year

You may say, the bank can give you a guaranteed interest rate? Yes?

True, Banks can give you a guaranteed interest rate because they give less than one percent a year.

3. You Can’t Understand How They Earn Money

Do your Due Diligence and ask them how their company earns.

Don’t invest if they could not even explain how they could earn such high returns. Walk away if they try to explain their investment strategies in obscure language to sound technical and confuse you.

4. It’s Just Too Good to be True

Again,If it’s too good to be true, it probably is. I can’t imaging how people get duped till now by text scams. It’s those scams where a victim received text message saying, “Congratulations! You’ve just won P50, 000  blah blah blah, but to claim their prize, they needed to send some money.

Some people are also victimized by scams because they are invited by their friends, and due to trust or as pakikisama they invest their money and got scammed

Some victim claims that the people who invited you the scam are very nice and honest people, but they could just be as ignorant as you are.

I wrote this article as I too got victimized by Ponzi Scheme during those days when I was not yet Financially literate.

I lost $200 in Singapore by a scammer named Maria -that’s her real name. She’s lucky I don’t have her full name 😀

Last time I know she was still in Changi Prison in Singapore. Sadly, I never got back my $200 dollars and I never heard any news from her anymore, that’s a very painful tuition fee.

If you don’t want to get victimized by Scams then subscribe now, to my blog Super OFW Investor and feel free to share and comment below.

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Nolan Lazaro
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