Legal expert explains online 'paluwagan' schemes and how to avoid them

With Christmas and year-end bonuses coming left and right, it's important for the public to remain vigilant against online scams.

In a segment of "Kapuso sa Batas" on Unang Hirit, Atty. Gaby Concepcion reminded the public anew to beware of certain individuals or groups on social media who supposedly try to lure investors to give money in exchange for a huge return.

To avoid falling victim to "paluwagan" schemes, Concepcion said one must learn how to tell legitimate businesses and organizations from professional scammers.

"Precisely, para masigurado nating kung legit ang mga ito at hindi manloloko, kung meron ba talaga silang pera, kung sila talaga ay legitimate na mga outfit na in the business, meron adequate na pondo," the lawyer said.

One sure way to do this is by checking with the Securities and Exchange Commission (SEC) first before shelling out a single peso.

"So, unless sa mga nauusong paluwagan na kumukuha ng pera mula sa publiko para sa pangako, mataas na interes, unless nakarehistro sila sa SEC, malamang, mga ito ay ilegal at dapat ipatigil," she said.

Concepcion also said that those who are found guilty of organizing illegal online "paluwagan" circles face a hefty fines and plenty of prison time that can last for more than 20 years.

"Maaring magkaroon ng fine ng up to P5,000,000 at kulong na seven to 21 years, depende sa extent ng panloloko so, as per ilalim ng Revised Penal Code, isa pa ring kaso for swindling o estafa o panloloko sa kapwa na dapat lang ay merong penalty o kulong," she said.

Stay safe at home and online, mga Kapuso! —Margaret Claire Layug/MGP, GMA News