Financial scam are everywhere today. Online and offline scammers are always on the go and looking for the next victim. Sad to say, many Filipinos easily fall into trap and being scammed. Whether they are aware at the beginning or not, they will only realize it after their money were gone.
Previously, I shared the latest suspected financial scam in the Philippines 2015 to help our fellow kababayans become aware of the SEC advisory about those companies. Most of them are only “suspected” financial scam and under investigation but SEC advised the public to be more vigilant and careful with those companies.
On this short article, I will share 4 main reasons why Filipinos easily fall into financial scam. By sharing article like this, I hope I can provide additional knowledge and personal finance tips to our fellow kababayans to avoid financial scam and be more vigilant in taking care of their hard-earned money. Here’s the list.
4 Reasons why Filipinos getting scammed
1. Lack of financial knowledge
This is the number 1 reason why many Filipinos fall into trap of financial scam in the Philippines or even abroad. They do not have enough financial knowledge in general and specifically in those investments they are venturing to. It is always advise not to invest on the things you don’t understand.
We should always keep that in mind. Study and educate yourself first in any kind of investments you are venturing to. If you got an invitation or an offer, whether you know the person or not, take time to sutdy all the information involving around that person and the company.
Learn how their system works, how they operate, their legalities and many other things. You can check this investment scam checklist and 3 tips to avoid financial scam.
Continue educating yourself by attending financial seminars, reading personal finance blogs, personal finance related books, watching personal finance related videos and many more. Invest in yourself first!
Another main reason why Filipinos fall into “trap” is because of being greedy. On the news interview of the scam victims aired last night, most of them joined the company because of the high returns promised by the recruiter.
The “double or even triple your money in just a short period of time” should always be a buzzer to everyone to become aware how the company and their system works.
Greed is a human nature and if not properly controlled, it can lead us to wrong decisions in life. Don’t be fool by those promises!
3. Easy money
Easy money is another reason why many Filipinos fall into financial scam. The trap of “you’re just invest xxxxx amount of money and will do nothing” then you’re money will grow on it’s own.
As mentioned, this can happen if you are not financially educated on that kind of investment, greedy and of course LAZY! Who in the world believe that you can earn money without doing anything?
Probably you can on some kind of passive income generating businesses or investments but you should put full effort on that too initially and of course you have to know them first.
Be more vigilant in “easy money” scheme of investments. Make sure you understand how the process and systems works.
4. Lack of support from the Government
Another reason I see why many Filipinos getting into financial scam is the lack of support from the government. Most of the financial scam were done after we see the government taking action. Yap they have advisories left and right but prevention and monitoring of those “financial scammers” are minimal.
It’s easy to registered a business and get all legal papers but most of the time, the financial scam happen during the process of operation. The government should be more active in monitoring and watching every companies to minimize or prevent financial scam to happen.
We can also have additional preventive measures like additional requirements, process or system that will require companies to prove their legalities (it’s only in my mind).
Additionally, we can enhance our law and increase fine and years of imprisonment for companies and peple who were proved to be scammers.
Those are the main reasons I can think of why Filipinos easily fall into financial scam. I just named a few. There could additional on the list. Feel free to add them on the comment section below to help our fellow kababayans.
We should always remember that being financially educated is the best way we can avoid these financial scams. You can find more ways how you can grow your money in legal and productive ways. Invest in yourself first. Cheers!
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