SEC warns vs scammers posing as Paragon Credit
MANILA, Philippines — The Securities and Exchange Commission (SEC) has warned the public against scammers posing as Paragon Credit Alliance 604 Corporation to lure borrowers into fraudulent lending schemes.
In an advisory on Wednesday, the regulator said certain individuals and entities have been falsely posing as representatives of the registered company to deceive borrowers.
These actors are using fake logos, fraudulent social media accounts, unauthorized websites and unregistered online lending platforms (OLPs) to lure victims.
READ: SEC warns vs loan scams impersonating registered firms
The SEC stressed that these persons are not authorized by, affiliated with, or connected to Paragon Credit in any way.
According to reports cited by the Commission, the schemes typically involve advance-fee arrangements, where victims are asked to pay processing fees before a loan is released.
The SEC reiterated that such arrangements are a common modus operandi in fraudulent lending activities and should be treated as red flags.
Caution advised
Paragon Credit has clarified that it does not require any advance payments prior to the release of loans.
The Commission urged the public to exercise caution and avoid engaging with suspicious loan offers, especially those coming from unofficial channels.
READ: SEC flags 3 firms for illegal investment solicitation
It advised borrowers to verify directly with the company through its official website, email and contact numbers before entering into any transaction.
The SEC also reminded the public to check the registration and authority of financing and lending companies, including their OLPs, before dealing with them.
Consumers were encouraged to report fraudulent activities and submit complaints through the SEC hotline, iMessage portal, official website, or mobile application.
The regulator said these platforms may also be used to verify the legitimacy of financing and lending firms and their online lending operations. /dda
