Bankers group tells public to be wary when investing

CEBU, Philippines - The Cebu Bankers Club (CBC) is telling the public not to fall for get-rich-quick investment schemes amid reports of people losing money to investment frauds.

"Be especially careful if you receive an unsolicited pitch to invest in a company, or see it praised online, but can't find current financial information about it from independent sources," the CBC noted in an advisory it released this week victimized by scams in other areas in the country.

The bankers group advised the public to always investigate before investing.

"Unsolicited emails, message board postings and company news releases should ever be used as a sole basis for your investment decisions," it said.

An investor must also know well the person touting the investment even if he or she already knows him socially, the group advised.

"Always find out whether the securities salesperson who contact you are licensed to sell securities and whether they or their firms have had run-ins with regulators or other investors," said the CBC, which has around 40 member banks in Cebu.

The bankers club said that investors could identify the "red flags" that may signal a fraud.

"If it sounds too good to be true, it is," said the CBC, warning against investments that will make big returns, is a breakout stock pick and has almost no risk.

Scam artists usually tell victims that an investment is a once-in-a-lifetime offer and that it will be gone tomorrow. Fraudsters also often try to lure investors through free investment seminars.

CBC President Maximo Eleccion said yesterday the Cebu banking industry has so far not received any complaints on potential scams.

Despite this, Eleccion said, people should always avoid investments that could potentially lose their hard-earned money.  (FREEMAN)