SEC warns vs. investing in company that used fake endorsement by DOF's Go

The Securities and Exchange Commission (SEC) has issued a warning to the public against an investment scheme by Quantum Trust, which it flagged for using a fake endorsement by Finance Secretary Frederick Go.

In a statement, the SEC, citing an advisory dated December 2 by its Enforcement and Investor Protection Department (EIPD), said it found Quantum Trust to be offering investments to the public without obtaining the necessary secondary license from the Commission, in violation of Republic Act 8799, or the Securities Regulation Code.

The corporate regulator said Quantum Trust is enticing the public to invest in its supposed "state-funded project," with a promise of earning passive income of as much as P180,000 weekly for a minimum investment of at least P19,800.

"Similar to previously exposed fraudulent investment scams, Quantum Trust promises unrealistically high returns with little to no risk, and employs aggressive marketing tactics, including claims of 'limited slots' or 'urgent enrollment requirements' to pressure individuals into investing immediately," the SEC advisory read.

The SEC, moreover, said the entity is being advertised through a phishing website, which pretends to be a webpage of GMA News Online.

The flagged website contained a fabricated news article which claimed that its project was endorsed by Finance Secretary Go.

As early as November, GMA News Online flagged the fake news article, which carried a made-up interview of Go. The fake news article contained elements designed to make it look like one that is on GMA Network Inc.'s news website. 

The URL of the article page is not that of the GMA Network, Inc. nor of GMA News Online.

GMA News Online has warned against such articles posing as those belonging to the network's digital assets.

GMA News Online may be accessed through https://www.gmanetwork.com/news/.

Meanwhile, the SEC warned the public "not to register, log in, or download apps promoted by unknown platforms, as these are often used for phishing or other cyber-enabled scams."

"Engaging with such websites or applications may not only lead to financial loss but also expose one's personal data, which may then be exploited for further fraudulent activities," the advisory read.

The corporate regulator cautioned the public to remain vigilant amid the rise of entities that fabricate endorsements from celebrities, public figures, high-ranking government officials and reputable institutions, to make it appear that their illegal investment schemes are legitimate.

The SEC cited other "red flags" of illegal investment schemes which include the promise of unusually high or guaranteed returns; use of a fake or suspicious website imitating new outlets or government agencies; requirement to register through unknown links or applications; and pressure tactics such as limited-slot promotions or urgent calls to invest.

"The Commission urges the public to visit the SEC website or download the SEC Check App to verify the legitimacy of an entity before investing," it said. — VDV, GMA Integrated News