Complete Guide: Protect Yourself from Fraud and Scams in the Philippines

What it is: Illegal installation of malicious hardware (scanners, cameras, keypad overlays) or software in ATMs or Point-of-Sale devices. Scanners copy card information while cameras capture your PIN, enabling criminals to create counterfeit cards.

Jackpotting: When illegally installed software gives hackers direct control over ATM functions to dispense cash.

Protection Tips:

• Look for unusual features, loose parts, or anything that seems out of place on ATMs
• Always cover your keypad when entering your PIN
• Use ATMs in well-lit, well-guarded areas
• Ensure your card has an EMV chip
• Never let others handle your card or stand too close during transactions
• When using POS devices, keep your card in sight and watch the cashier
• Regularly check account balances and statements
• Report unauthorized transactions immediately

Red Flags: ATM looks different than usual, keypad feels loose, card gets stuck, unusual screens or messages

What it is: Scammers assume your identity using stolen personal information, bank account, or credit card details to make unauthorized transactions. They often pose as bank officials or government employees requesting information for “official purposes.”

How They Get Your Info: Phishing, vishing, spoofing, skimming, social engineering, or data breaches

Protection Tips:

• Be suspicious of unexpected calls requesting personal information
• Always note caller details (name, company, department) and verify independently
• Call your bank directly using official numbers to confirm any requests
• Activate multi-factor authentication (OTP, security questions, biometrics)
• Set up account alerts for all transactions
• Safeguard physical documents (IDs, bank statements, bills)
• Shred sensitive documents before disposal
• Report incidents immediately

Red Flags: Unexpected calls about account problems, requests for immediate information sharing, pressure to act quickly

What it is: Creation of counterfeit credit, debit, or ATM cards using stolen card information to make unauthorized purchases or withdrawals.

How It Happens: Through skimming devices, fake card readers, compromised POS systems, or data breaches

Protection Tips:

• Never let your card leave your sight during transactions
• Don’t photograph or post pictures of your cards on social media
• Never share card details, PINs, or personal information
• Verify legitimacy of merchants and their payment systems
• Use contactless payments when possible
• Monitor statements regularly
• Report lost or stolen cards immediately
• Use official ATMs from reputable banks

Red Flags: Card doesn’t work suddenly, unexpected charges, merchant asks to swipe card multiple times, unfamiliar transaction locations

What it is: Fraudulent emails, messages, or calls designed to steal personal information by impersonating legitimate organizations.

Common Signs:

• Generic greetings (“Dear Valued Customer”)
• Grammatical errors and poor spelling
• Urgent language requiring immediate action
• Suspicious links or attachments
• Requests for sensitive information
• Unverified sender contact information

Variations:

• Spear Phishing: Targeted attacks on specific individuals using personal information
• Pharming: Redirecting users to fake websites that steal information
• Vishing: Voice calls or voicemails requesting sensitive information
• SMiShing: Text message phishing using SMS

Protection Tips:

• Banks never request information via email, text, or unsolicited calls
• Don’t click links or download attachments from suspicious sources
• Always verify requests by calling official numbers directly
• Look for HTTPS and security indicators on websites
• Use official apps rather than web browsers for banking
• Keep software and browsers updated
• Report phishing attempts to your bank and authorities

Red Flags: Unexpected security alerts, urgent account verification requests, links to unfamiliar websites

What it is: Fraudulent text messages requesting personal information, payments, or fees in exchange for fake prizes, services, or to resolve fabricated problems.

Common Types:

• Fake lottery or raffle winnings requiring “processing fees”
• False claims of mistaken money transfers to your account
• Fake COVID-19 testing or health-related charges
• Bogus service charges for things you didn’t order
• Emergency scams claiming family members need help

Protection Tips:

• Be cautious with unexpected messages from unknown numbers
• Don’t provide personal information via text message
• Verify claims by calling companies directly using official numbers
• Don’t send money or pay fees for unsolicited prizes or services
• Be skeptical of urgent requests involving money
• Block and report spam numbers
• Don’t click links in suspicious text messages

Red Flags: Messages about winning contests you didn’t enter, urgent payment requests, poor grammar and spelling

What it is: Fake websites designed to look legitimate but created to steal personal information, login credentials, or payment details.

How to Identify Legitimate Websites:

Check the URL:

• Look for “https://” (not just “http://”)
• Verify the padlock icon is present and closed
• Check for correct spelling of domain names
• Be wary of unusual domain extensions

Examine the Content:

• Look for professional design and proper grammar
• Check for working contact information
• Verify company details match official sources
• Look for trust badges and security certificates

Verification Tools:

• Use sitereview.bluecoat.com or virustotal.com to check website safety
• Search for reviews and complaints about the website
• Compare with official company websites

Protection Tips:

• Type website addresses directly instead of clicking links
• Bookmark legitimate websites for regular use
• Use official mobile apps when available
• Don’t enter personal information on suspicious sites
• Log out properly after online sessions

Red Flags: Poor website design, spelling errors, no contact information, suspicious URLs, requests for unnecessary personal information

What it is: Fraudulent documents claiming to represent peso or dollar deposits, fund transfers, gold reserves, securities, or investments allegedly issued or guaranteed by BSP, government agencies, or reputable institutions.

Important Facts:

• BSP does not authorize individuals or private companies to market such documents
• BSP only deals with supervised financial institutions and institutional partners
• BSP does not provide banking services to individual consumers
• Government agencies don’t guarantee private investment schemes

Protection Tips:

• Don’t believe claims that possessing such documents enables financial transactions
• Verify any document’s authenticity with the issuing organization directly
• Be suspicious of documents promising guaranteed high returns
• Research the company or individual offering the documents
• Consult with licensed financial advisors before making investment decisions

Red Flags: Documents promising unrealistic returns, claims of government backing for private investments, pressure to invest quickly based on document authenticity

Ponzi Schemes: Fake investment programs where returns to earlier investors are paid using money from new investors rather than from legitimate business operations.

Pyramid Schemes: Participants earn money primarily by recruiting others rather than selling legitimate products, with earnings based on the number of recruits.

8-Point Legitimacy Test for Multi-Level Marketing:

1. Is there a real product being sold?
2. Are commissions based on product sales, not recruitment fees?
3. Is the focus on selling products, not recruiting people?
4. Is compensation not directly tied to number of recruits?
5. Would participants still earn money if recruitment stopped?
6. Is there a reasonable product return policy?
7. Do products have fair market value?
8. Is there a genuine reason to buy the product besides the business opportunity?

If any answer is NO, it’s likely a scam!

Protection Tips:

• Be skeptical of “guaranteed” high returns with low risk
• Research investment companies thoroughly before investing
• Understand that legitimate investments always carry risks
• Get written documentation of all investment terms
• Verify company registration with SEC
• Don’t let anyone pressure you into investing quickly
• Consult independent financial advisors

Red Flags: Promises of quick wealth, emphasis on recruiting others, lack of clear business model, pressure to invest immediately

What it is: Scammers create fake profiles on dating sites or social media to develop romantic relationships with victims, eventually requesting money, gifts, or personal information.

How It Works:

• Create attractive fake profiles using stolen photos
• Target emotionally vulnerable individuals
• Build trust through constant communication and emotional manipulation
• Create fake emergencies requiring financial assistance
• Request money for travel, medical bills, legal fees, or other fabricated needs

Protection Tips:

• Be cautious about online relationships that progress quickly
• Don’t send money, gifts, or personal information to online contacts
• Verify identity through video calls or in-person meetings
• Be suspicious of people who avoid phone calls or meetings
• Research photos using reverse image search
• Trust your instincts if something feels wrong
• Talk to friends and family about online relationships

Red Flags: Reluctance to meet or talk on phone, requests for money or gifts, stories that don’t add up, professional-quality photos, claims of travel or military deployment

What it is: Scams requiring victims to pay upfront fees before receiving promised large sums of money from inheritances, lottery winnings, business deals, or other fabricated opportunities.

Common Scenarios:

• Fake inheritance from deceased relatives
• Lottery winnings from contests you didn’t enter
• Business partnership opportunities requiring investment
• Government grants or subsidies requiring processing fees
• Charity donations requiring administrative costs

How It Works:

• Initial contact through email, letter, or social media
• Promise of large financial rewards
• Request for increasingly larger “processing fees”
• Provide fake documentation to appear legitimate
• Disappear once payments are made or invent new fees

Protection Tips:

• Never pay upfront fees for promised money
• Be skeptical of unexpected windfalls
• Verify lottery or contest participation independently
• Research companies and individuals thoroughly
• Don’t provide personal or banking information
• Consult with trusted advisors before making payments

Red Flags: Unexpected money offers, requests for upfront payments, urgency to act quickly, poor communication quality

What it is: Criminals gain control of your phone number to intercept authentication codes and access your financial accounts.

Attack Methods:

Type 1 - SIM Replacement:

• Fraudsters gather your personal information through various means
• Contact your mobile provider pretending to be you
• Request SIM card replacement claiming lost or damaged card
• Your original SIM gets deactivated, new SIM sent to fraudster
• Authentication codes now go to the fraudster’s device

Type 2 - Fake Promotions:

• Scammer poses as telecommunications representative
• Offers fake “upgrades” or “promotions” requiring SIM exchange
• Clones or steals your SIM card information
• Uses information to access your accounts

Protection Tips:

• Never give SIM card details to unverified callers
• Add extra security to your mobile account (PIN, password)
• Monitor your phone for sudden loss of signal
• Check bank accounts if your phone stops working unexpectedly
• Contact mobile provider immediately if SIM stops working
• Use authenticator apps instead of SMS when possible
• Set up account alerts for all financial transactions

Red Flags: Unexpected loss of phone service, calls about SIM upgrades, requests for SIM information

What it is: Fake job opportunities, especially for overseas employment, designed to collect fees from job seekers or steal personal information.

How It Works:

• Post attractive job advertisements with high salaries
• Target people seeking overseas employment opportunities
• Request upfront payments for various “requirements”
• Ask for fees for certifications, permits, seminars, or processing
• Disappear after receiving payments
• May also steal identity information for other fraudulent purposes

Protection Tips:

• Research companies thoroughly before applying
• Verify job postings with the company directly
• Be cautious of jobs requiring upfront payments
• Check recruiter credentials through LinkedIn and professional networks
• Don’t provide sensitive personal information early in the process
• Meet recruiters in person when possible
• Verify overseas job opportunities with Philippine Overseas Employment Administration (POEA)
• Be skeptical of jobs that seem too good to be true

Red Flags: Requests for upfront fees, vague job descriptions, no company address or phone number, pressure to pay quickly, unprofessional communication

What it is: Fake lending companies or individuals offering loans through websites or social media, primarily focused on collecting upfront fees and personal information rather than providing legitimate loans.

How It Works:

• Advertise easy loan approval with minimal requirements
• Request upfront fees for “processing,” “insurance,” or “credit scoring”
• Collect detailed personal and financial information
• Either disappear after receiving fees or provide loans with predatory terms
• May use collected information for identity theft

Before Using Any Online Lender:

Research Thoroughly:

• Find the registered legal name of the lender
• Understand relationship between lender and platform provider
• Check customer reviews and complaint records
• Look for red flags indicating poor service or unfair practices

Verify Licenses:

• Confirm BSP-supervised financial institutions are properly licensed
• Check SEC registration for other lending companies
• Remember: No protection when dealing with unauthorized lenders
• Use BSP website or call consumer affairs to verify

Safe Borrowing Practices:

• Only work with licensed, registered, authorized lenders
• Ensure platform security before sharing information
• Evaluate your actual credit needs and repayment capacity
• Read and understand all terms before signing
• Keep records of all transactions and communications
• Verify accessible customer service and complaint procedures

Red Flags: Guaranteed approval regardless of credit, requests for upfront fees, pressure to borrow immediately, no proper licensing documentation