Public warned on proliferation of fake government accounts in Philippines

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The Philippine Stock Exchange Inc. (PSE) and the Securities and Exchange Commission (SEC) are alerting the public about schemes that impersonate legitimate entities and personalities to entice the public to invest.

A Department of Agriculture agency also said fake social media accounts are using government names to promote a certain fertilizer claiming to be effective in boosting crop yields.

The Philippine Rice Research Institute (PhilRice) said at least two social media pages that surfaced online recently were falsely representing the institution as well as the Rice Competitiveness Enhancement Fund (RCEF) Extension Program.

The PSE, meanwhile, said a fraudulent cryptocurrency investing scheme using its logo and name on its website is luring potential investors to register and create an account through the website 'https://pse-philippine.com/User/index.'

'Based on the information provided, there is an online advertisement about investing in the PSE. When potential investors express interest, they are contacted through messaging applications. The supposed investment is shown to be doing well and investors are asked to increase their investment amount through various e-wallet accounts,' it said.

As part of the scheme, investors will be informed that they entered the wrong order, leading to the loss of the account's withdrawal password.

To address the issue, the scammers will then offer to consult with PSE's customer service. The solution provided is to create a new account that requires a new deposit and completion of new tasks.

According to the PSE, the messaging applications present a few other members who appear to be in the same predicament, but who allay doubts or fears about the scheme by showing they have been able to withdraw their investments.

The PSE said it does not own and operate the website'https://pse-philippine.com/User/index.'

Further, it stressed that it does not sell cryptocurrencies and that its employees or agents do not advertise or promote cryptocurrency.

'The PSE reiterates that all legitimate stock transactions are done through PSE-accredited trading participants or stock brokerage firms. PSE and any of its officers, employees and agents do not undertake stock transactions on behalf of clients,' it said.

In a separate advisory, the SEC urged the public not to engage with Bagong Bansang Maharlika (BBM) International Inc., a group using President Marcos' name and whose corporate registration has been revoked due to its illegal solicitation of investments.

Despite the issuance of a revocation order as early as November 2023, the SEC said BBM International maintained its operations in certain parts of Visayas and Mindanao.

The SEC said BBM International's corporate registration was revoked due to its collection of membership fees from residents of various local communities, promising to provide food security, free education, free hospitalization, cash assistance and livelihood to all Filipinos aged one year and above worldwide.

To create a false impression that its programs are legitimate and sanctioned by the current administration, it also made use of Marcos' image as part of its marketing materials.

As early as Aug, 28, 2023, the SEC has issued an advisory to the investing public to exercise caution when dealing with the group.

The SEC warned that those who act as salesmen, brokers, dealers or agents, representatives and promoters of unauthorized investment activities may be held criminally liable under the Financial Products and Services Consumer Protection Act as well as the Securities Regulation Code, which are both penalized separately up to P5 million or imprisonment of up to 21 years, or both.

The PSE, for its part, encourages the public to exercise extreme caution and vigilance in dealing with companies or individuals soliciting stock investments, especially those which promise guaranteed returns or income.

'Investment scams usually involve promises of big payouts, quick money or guaranteed returns and do not contain disclosures on the risks of investing,' it said.

Meanwhile, the fake PhilRice accounts were misleading the public in promoting a certain product called Super Seed Organic Fertilizer.

The agency noted that the fake accounts were also claiming that Emil Javier, a national scientist, was reportedly endorsing the fertilizer as a 'groundbreaking' product that can 'revolutionize' the country's agriculture sector.

The fake social media accounts are also using the name of Rodel Maghirang, the former director of the Institute of Plant Breeding of the University of the Philippines Los Baños, in promoting the product.

'It is disheartening to see the misuse of our institution's name and credibility in a marketing scheme,' John de Leon, PhilRice executive director, said.

'We urge the public to exercise caution and verify information before trusting online sources. Our official channels are the only reliable sources for updates and advisories related to our programs and services,' De Leon added.