New investment scam targets OFWs—SEC issues urgent warning

Authorities flag the unauthorized Zild Telecommunication scheme promising a 30% return in 30 days, reminding the public that “High Return, Low Risk” is a red flag.

Authorities have warned the public against an alleged unlawful investment scheme that is reportedly targeting Overseas Filipino Workers (OFWs), a group often considered vulnerable to high-return offers due to their cross-border earnings and financial goals.

Zild Telecommunication Repair Service, a telecommunications-related business based in Bulacan, has been reported to be enticing OFWs to invest amounts of up to ₱450,000. In exchange, investors are allegedly being promised a 30% return within a short period of 30 to 45 days. The Securities and Exchange Commission (SEC), however, has clarified that the company is not authorized to solicit investments from the public.

Know the law: The license to solicit

According to the SEC, only entities that are properly registered and licensed are allowed to offer or promote investment opportunities to the public. This includes securing the necessary permits and complying with securities regulations designed to protect investors from fraudulent or high-risk schemes.

The commission also reiterated that investment offers that promise unusually high returns in a very short timeframe are a common warning sign of potential fraud. While such offers may appear attractive, they often carry significant risk and, in many cases, may not be legitimate investment products.

Authorities continue to urge the public, especially OFWs and their families, to exercise caution when dealing with unsolicited investment opportunities. They are encouraged to verify the legitimacy of any company or individual offering financial products by checking directly with the SEC or other relevant regulatory bodies before committing any funds.

The warning comes amid ongoing efforts by regulators to crack down on illegal investment schemes that circulate both locally and online, often using convincing marketing tactics to attract unsuspecting investors.

 

 

If it sounds too good to be true, it usually is. Discover why the SEC is warning OFWs about a new 30% “quick-return” scheme and how to verify your investments before your hard-earned money disappears.

 

 

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