Many overseas Filipino workers (OFWs) who grow their income abroad want to invest their money into something worthwhile. However, investment scams have become prominent these days, which is why OFWs must be careful when investing their money.
Below are the 5 ways OFWs can do to avoid investment scams.
Tip #1: Educate yourself.
The biggest thing you must do is invest in knowledge. You must have the necessary knowledge on how to identify red flags in investments, protect your personal information from scammers, and so on.
You must also have a good comprehension of the business model and how investment works. Avoid investing in companies that have vague investment methodologies and fail to explain how they plan to generate returns.
To educate yourself, you can attend financial literacy programs and events related to investments, such as the Philippine Property and Investment Exhibition (PPIE). This will broaden your knowledge about the markets and even widen your connections for more successful investment results.
Tip #2: Background check the company.
It’s important that you know whom you are working with. Check out everything about the company you are investing in, no matter how trustworthy it seems. You can look at their proven track record, including their past performances. If they are involved in unethical fraud practices, you must think twice before investing in them.
Tip #3: Update yourself about the government’s public advisories and warnings about investment schemes.
You must be updated about the public advisories and warnings regarding fraudulent investment schemes. The Securities and Exchange Commission (SEC), which is in charge of the registration and supervision of corporations and securities in the Philippines, may sometimes make announcements about investment scams on their website or social media accounts.
Similarly, the Department of Migrant Workers (DMW) as well as the Philippine Stock Exchange (PSE) assists OFWs and their families in such matters, which ensures a fair and transparent market for the buying and selling of securities.
Tip #4: Avoid promises of high returns in a short time.
Investments do not promise that you will become an instant millionaire in a short amount of time. Many victims of investment scams fall into the trap of unrealistic promises of potential high returns. Therefore, always think it over a hundred times before investing your hard-earned money.
Tip #5: Get a second opinion.
Always be skeptical of unsolicited investment opportunities, especially online. Many investment scams target OFWs on the phone, and sometimes, through acquaintances.
Therefore, you must get a second opinion before you invest your money. You can ask for a second opinion from a registered, qualified advisor, a lawyer, or an accountant.
If you want to learn more about how you can prevent yourself from becoming a victim of investment scams, you can attend this year’s Philippine Property and Investment Exhibition. The event will be held on May 11-12, 2024, at the Bristol Hotel, Deira, Dubai to help you learn more about investments.
Source: The Filipino Times
