SEC issues guidelines to detect scams

Amid deepfake rise

MANILA, Philippines — With the alarming rise in the use of deepfake technology to promote fraudulent investment opportunities, the Securities and Exchange Commission (SEC) has released a set of guidelines to help the public detect scams.

The SEC said that deepfakes, which are synthetic videos, audio recordings, or images created using artificial intelligence (AI) to mimic real people, “undermine our ability to differentiate what is real and what is not.”

The commission said these AI-generated forgeries are now being used to impersonate public figures, financial experts or celebrities, making it appear that they are endorsing investment schemes.

Prominent tycoons such as Ramon Ang, Enrique Razon Jr. and Manuel Villar Jr., as well as conglomerates such as Ayala Corp. and JG Summit, have been exploited by scammers for these fraudulent activities.

Scammers leverage the reputation of these well-known and high-profile businessmen or reputable corporations to lure unsuspecting individuals into investing their hard-earned money into fraudulent schemes.

“This has and will continue to have tremendous economic and societal implications if not addressed,” the SEC said.

To detect deepfakes, the commission urged the public to look at the source, context and intent of the content of a post or advertisement.

The commission said that claims of guaranteed high returns with little or no risk, messages promoting exclusivity or urgency, celebrity or government endorsements that cannot be verified through their official platforms and pressure to sign up immediately or share the video with others before it’s taken down are among the red flags and warning signs.

“Can the identity of the source be verified? Reliable sources include official organizations, recognized institutions, or individuals with direct knowledge or ownership of the content. Be cautious of impersonated or unverified entities,” the SEC said.

“Does the content pressure you to act immediately, take risks or do something unusual? Be wary of messages urging you to download unfamiliar apps, click on suspicious links, provide personal information, or invest in offers that seem too good to be true,” it said.

Further, the SEC warned that videos with odd facial movements, unnatural lighting or mismatched audio are signs of deepfakes.

To stay safe, the SEC urged the public to be cautious of endorsements seen only on social media or messaging apps. It also discouraged the public from giving personal or financial information through links in videos or unverified sites.