Metro Manila (CNN Philippines) — 

Scammers haven’t taken a break— even amid the

pandemic — and are giving cryptocurrency a bad name. In August 2020, the
Department of Finance (DOF) revealed that the name of Secretary Carlos Dominguez
III was used to promote a fake cryptocurrency auto-trading platform called “Bitcoin
Revolution.”

The DOF also learned that a platform called “Bitcoin Lifestyle” falsely claimed that
President Rodrigo Duterte “is urging all citizens of the Philippines to learn about Bitcoin
Lifestyle quickly to get involved.” These were all refuted by the DOF.

However, fraudulent schemes haven’t stopped there. Since April, the Securities and
Exchange Commission (SEC) has exposed nearly 30 entities luring people to put their
hard-earned money into illegal investment schemes with the promise of high returns
over a short period.

Some of these cryptocurrency fraudsters employ Ponzi or pyramiding schemes that use
the income from new participants to pay out returns to earlier investors. Others use
internet-based, instant-messaging platforms, such as Telegram and Messenger, to
target people interested in cryptocurrencies.

Citing the weak economy, the DOF urged the public to take care of their hard-earned
cash and stay away from questionable investment schemes. Here are some ways on
how to avoid being duped into an investment scam.

1. Be wary of red flags.

Be wary of unsolicited offers. If it sounds too good to be true, it probably is. Don’t
believe promises of guaranteed returns when asked for a hefty sum of money.
Fraudsters also often tell their victims that this is a once-in-a-lifetime offer and it will be
gone tomorrow. Stay away from the pressure of sending the money right away.
Reciprocity like taking you to free seminars or buying you free coffee is also a red flag.

Some recent examples of fraudulent or harmful investment schemes also make

fantastic claims about their affiliation with authorities. Online scams may even invoke
the names of government regulators or wealthy and influential citizens. Watch out for
these signs.