How to avoid online investment scams? Financial expert answers

There are so many investment opportunities online promising quick returns but on Wednesday's episode of "Unang Hirit," financial expert Tyrone Charles Solee warned about scams.

According to the financial expert, many people fall into online investment scams because of "quick money" promises.

“Kapag nag-offer sa kanila ng mga malalaking returns ng investment, na-e-engganyo agad,” Solee said. 

[When you offer big returns of investment, they are encouraged to invest easily.]

Solee said if an online investment company promises a monthly return higher than 2-3% of your initial investment, this might be a scam. 

“Kailangan busisiin natin ‘to,” he said. “Paano nila pinapatakbo ‘yung negosyo? Paano [pinapaikot] ‘yung pera na in-invest mo? Kaya ba talaga mag-generate ng ganung return?”

[You have to be meticulous about it. How are they running the business? How are they recirculating] your money? Can it really generate that kind of return?]

Solee advised potential online investors to always research the company or person they want to invest in before sending any money. 

“Una, kailangan mong malaman kung anong background nung mga nagpapatakbo ng negosyo,” he said.

[First, you have to know the background of whoever is running the business.]

“Pangalawa, kung registered ba sila sa Security and Exchange Commission  or Department of Trade and Industry ,” he added. “Pangatlo, paano nila pinapaikot ‘yung pera na ‘yun?”

[Second, are they SEC or DTI registered?]

Solee also advised visiting an investment company's physical office because some scammers put fake addresses online to look legit. 

— Hermes Joy Tunac/LA, GMA Integrated News