In a bid to combat the growing wave of online financial fraud, the Securities and Exchange Commission (SEC) in the Davao Region has revealed it is monitoring four entities suspected of involvement in cryptocurrency scams. The announcement comes as regulators across the country intensify efforts to protect the public from deceptive online investment schemes.
During a business forum on June 20, 2025, SEC-Davao Director Atty. Katrina Jamilla Ponco-Estares said these entities are operating largely outside the law, often unregistered and using digital platforms like e-wallets to solicit investments from unsuspecting victims.
“More on online scams now. Mostly Hindi registered sa SEC at mostly sa online lang. Meron kaming makikita online na invitation to the public to invest,” Ponco-Estares stated, highlighting how scammers rely on social media and online invitations to attract potential investors.
[Translation: “Most scams today are done online, and most of them are not registered with the SEC. We are seeing them inviting the public online to invest.”]
Online Platforms Fueling Hard-to-Trace Scams
Ponco-Estares explained that many of the scams SEC-Davao monitors are difficult to track because scammers often hide behind online anonymity, leaving victims with little recourse once funds are transferred. Between January and June 2025 alone, SEC-Davao received 11 complaints related to investment scams and 77 complaints involving illegal lending and financing activities across the region, underscoring the scale of the problem.
One of the common tactics involves the “advance fee loan” scam, where victims are lured through social media advertisements promising quick loans. Targets are then asked to pay upfront fees labelled as processing or registration costs, but the promised loans never materialise.
Short-Lived Apps, Elusive Scammers
Ponco-Estares also warned about seemingly legitimate lending applications that suddenly disappear after defrauding users. These short-lived operations exploit people desperate for loans, and victims often only seek help once they face harassment from scammers demanding additional payments. Investigations into such scams are frequently stymied when victims become unavailable or unwilling to cooperate, leaving authorities with incomplete information.
To combat this, SEC-Davao has issued multiple advisories and is coordinating with local government units and police through anti-scam units. The director urged the public to remain vigilant, stressing the importance of verifying any investment or lending platform’s registration on the official SEC website and avoiding online offers that seem too good to be true.
Recent Nationwide Crackdowns Highlight Threat
The SEC’s efforts in Davao come amid a series of high-profile crackdowns on crypto-related scams elsewhere in the country. On May 13, 2025, the Philippine National Police (PNP)-Anti-Cybercrime Group, in coordination with the SEC, arrested five individuals in Pangasinan for operating an unregistered cryptocurrency investment scheme. The arrest followed an entrapment operation, signalling authorities’ commitment to aggressively pursue perpetrators of crypto fraud.
In the same month, a Cebu-based call centre masquerading as a cryptocurrency investment firm was exposed after a hacker infiltrated its systems and leaked CCTV footage. The footage revealed the scam’s operations, including the use of AI tools and fake Bitcoin trading accounts, prompting a swift government investigation. Local law enforcement responded with a site inspection, issued a show cause order, and secured a cyber warrant to examine the call centre’s abandoned computers. Authorities also called on employees involved to come forward or face potential legal consequences.
Warnings from Authorities to Stay Vigilant
The growing number of crypto scams has not gone unnoticed by national agencies. In 2024, the Cybercrime Investigation and Coordinating Centre (CICC) issued a public advisory warning of a surge in crypto and dollar investment scams. The advisory urged investors to exercise caution, avoid offers promising unusually high returns, and always verify investment opportunities with the appropriate government bodies.
As online scams become increasingly sophisticated, the SEC’s latest monitoring efforts in Davao highlight the need for continuous vigilance and collaboration between regulators, law enforcement, and the public. While digital platforms offer opportunities for legitimate investments, they also provide fertile ground for scams that can devastate unsuspecting individuals.
Ponco-Estares’ message is clear: “Stay cautious, verify first, and don’t fall for promises that sound too good to be true.” In the rapidly evolving world of online finance, awareness and scepticism remain the first lines of defence.
