Question: I am looking for alternative ways to earn more money. My first option is to search for part time work-from-home jobs on the Internet. How do I know whether a job offer is legitimate or not?
Answer: The opportunity of getting paid to do part time work from the comfort of your home is so attractive. Imagine, not having to exert that much effort getting to and coming home from work while doing simple tasks on a computer. And it is on this inclination to use a life hack, of getting paid for less work that scammers feast.
Red flag #1. The part time job offer will pay an inordinate amount of money, sometimes in US dollars, which to the ordinary Filipino is already attractive in and of itself. As mentioned, tasks will be simple. Many times, no experience is required.
Red flag #2. The offer morphs into an investment where you are invited to put in a small amount that will generate huge returns that are too good to resist, at least for the less informed. Remember that to offer investments to the public, the operation must have a secondary license from the Philippine Securities and Exchange Commission (SEC).
This secondary license is on top of the requirement to register a business and be approved incorporation papers or what is called the primary license. Without a secondary license, the solicitation of investments from the public is illegal.
Red flag #3. To justify the huge returns, investments will be purported to be invested in complex and high-risk securities such as foreign currency trading, and financial derivatives, which many times are the latest craze in get-rich-quick schemes.
Red flag #4. The operation is not transparent. While there will be a website that you can access for basic information and investment procedures, there will be no customer account ledger. If you ask for one, they will say they cannot produce one because of some technical glitch. And to calm your fears, they will create a discussion group where fake customers will share experiences of how they were able to already withdraw their investments and earnings.
Red flag #5. To withdraw your money, you will need to add more first. This should already be a warning sign even to the less informed investor. But knowing that nervous investors will try to ask previous investors for their experience, the fake investors in the discussion group will try to assuage your fears. Any dissenting or disparaging comments will not be allowed for posting.
Red flag #6 (which is too late). When they see that you are onto their scam, these scammers will suddenly disappear. Their official and personal accounts will suddenly not be accessible for you.
If you want to see a sample of a scam, watch the 2024 movie “The Beekeeper” starring Jason Statham where his character applies his own version of justice on the scammers.
Remember what your parents told you, “Do not talk to strangers.” That advice is particularly important when you are trying to find a part time job. Rather than going on the Internet, try asking friends first.
And be a sleuth by first checking the background of the firm that is offering the part time job. Asking regulators like the SEC, the Bangko Sentral ng Pilipinas, Insurance Commission and the Department of Trade and Industry is a great way to do background checks. And if you detect a scam, report it to the appropriate regulator.
Lastly, do not forget the cardinal rule in investing—high return invariably involves high risk.
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Efren Ll. Cruz is a Registered Financial Planner and Director of RFP® Philippines, seasoned investment adviser, bestselling author of personal finance books in the Philippines and a YAMAN Coach. To consult with a YAMAN Coach, email yaman@personalfinance.ph. To learn more about personal financial planning, attend the 108th RFP Program this October 2024. To inquire, e-mail info@rfp.ph or text at 09176248110)