How do I spot and report an investment or Ponzi scam?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
Treat any offer of guaranteed high returns with little or no risk as a red flag — that is the classic Ponzi pattern, where early 'investors' are paid with money from newer ones until it collapses. In the Philippines, anyone soliciting investments from the public must be registered with the SEC and, for offering securities, hold the proper license; selling unregistered securities violates the Securities Regulation Code (RA 8799). Before investing, verify the entity on the SEC's Check with SEC portal and search the SEC's public advisories for its name. To report a scam, file with the SEC Enforcement and Investor Protection Department (EIPD); if you have already lost money, also report the estafa to the PNP Anti-Cybercrime Group or NBI.
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Frequently asked
What are the biggest red flags of a Ponzi or investment scam?
Guaranteed or 'fixed' high returns, pressure to recruit others for bigger payouts, vague or secret 'trading' strategies, difficulty withdrawing your money, and no SEC registration or license to sell securities. A legitimate investment discloses real risk; a scam promises there is none.
Which law does an unregistered investment scheme break?
The Securities Regulation Code (RA 8799) requires securities to be registered with the SEC before they are sold to the public (§8) and requires those who sell them to be licensed. Soliciting investments without that registration/license is a violation the SEC can act on, on top of estafa under Art. 315 of the Revised Penal Code.
Where do I report an investment scam?
File with the SEC Enforcement and Investor Protection Department (EIPD), which investigates securities violations and can issue advisories and cease-and-desist orders. Because you have likely also been defrauded, report the estafa to the PNP Anti-Cybercrime Group or NBI as well.
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What to do after an online scam — the first-hour playbook, where to report (PNP Anti-Cybercrime Group, NBI, DOJ Office of Cybercrime), how to spot and report investment/Ponzi scams to the SEC, phishing and OTP theft, online-shopping fraud (undelivered, fake, or misrepresented goods), romance and job scams, and the legal basis under estafa (Revised Penal Code Art. 315), RA 8484, RA 10175, RA 8792, RA 7394, and RA 8799.