Investment Fraud
No one would like to loose money, especially loosing money from fraud. When finding investments, most of us invest in traditional offerings stocks, bonds, and time deposits that are regulated by the Securities and Exchange Commission (SEC)or the BSP.
However, many consumers also invest large sums in less traditional offerings like investments in tangibles like rare coins, art, precious metals due to high return compared to more traditional investments. But ever so often we come across investments that promises high return on very short periods of time, its called investment fraud. Investment fraud relies on man's natural tendancy to be greedy. After all, who wants to turn down the opportunity to get rich quickly right?
One good example of investment fraud here in the Philippines is MULTITEL, the pyramind scheme headed by Rose Baladjay. She was able to scam people out of their hard earned money which amounted to millions and millions of pesos. MULTITEL promises its investors big returns on their investment in a relatively short time frame. At first people got paid and recruited more and more people to join, until the pyramind was no longer sustainable and finally collapsed.
Fraudulent investment promoters typically use aggressive marketing tools such as aggresive phone calls and handing out flyers on malls and even sending out spam mail and emails. We must all be vigilant before investing our hard earned money in investment vehicles we know little or nothing about. And remember, if it sounds too good to be true, then it probably is
Picture: www.lookstoogoodtobetrue.com
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